Kremikovtzi assets acquired by Sofia-based Eltrade at fourth auction

The assets of the Bulgarian steel giant Kremikovtzi were acquired at the fourth auction by Sofia-based Eltrade company, which was the only bidder and which paid the initial price of BGN 316 million (about $234 million), down 20 percent from the initial price at the third auction held on February 7, 2011, and down 44 percent from the initial price at the first auction held on September 13, 2010, Sofia News Agency has reported.
 
Eltrade produces fiscal cash registers, POS (point of sale) terminals, fiscal printers, calculators, mobile devices, barcode scanners and other similar products. Shortly after the deal, the Mediapool agency reported that the company is owned by a 26 year-old Bulgarian citizen and has been established a month ago.
 
Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($412 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May last year and was cleared for liquidation in June of the same year.
 
The total debts of Bulgaria's former largest steelmaker amount to BGN 1.9 billion (about $1.4 billion), whereas the market value of all of its assets has been estimated at BGN 837 million (about 620 million).