The Confederation of Independent Trade Unions in Bulgaria (KNSB) has appealed to the Bulgarian cabinet to support the final version of the recovery plan for the bankrupt Bulgarian steelmaker Kremikovtzi, proposed by its administrator Tsvetan Bankov, and for the extension of the repayment of its debt, Sofia News Agency has reported.
According to KNSB president Vasil Yanachkov, the approval of the Kremikovtzi recovery plan will not cost the Bulgarian government anything, while the capitalization of its BGN 900 million (about $667 million) debt will turn the National Electric Company (NEK) into a majority owner of the mill, to which it owes about BGN 89 million (approx. $66 million). The unions expect Bulgaria's finance minister Simeon Djankov to decide by the end of the week if the debt capitalization is feasible.
In addition, Mr. Yanachkov said that Kremikovtzi had been swamped with orders from Greece, Italy and Romania, but has lacked the technical capacity to fulfill them.
In 2009, Kremikovtzi is estimated to have produced about 250,000 mt of hot rolled coils.
Kremikovtzi was declared insolvent in August 2008. A court hearing concerning its liquidation has not taken place yet, but the key Bulgarian ministers have made it clear that the steelmaker would most likely be liquidated.