According to Sofia News Agency, the shareholders of the insolvent Bulgarian steel mill Kremikovtzi have rejected the recovery plan proposed by Tsvetan Bankov, the assignee in the bankruptcy of the mill. The plan in question involved the recapitalization of BGN 944 million (about $713 million) owed to creditors via conversion into Kremikovtzi shares.
In September this year, at a meeting with Mr. Bankov, the mill's creditors had backed the proposal to transform debts totaling BGN 1.6 billion (approx. $1.21 billion) into shares in the mill. As SteelOrbis previously reported, at the beginning of September, Kremikovtzi was given a market valuation of BGN 837.2 million (approx. $632 million) by consultancy agency Amrita Consulting House, while its total debt amounted to BGN 1.9 billion (about $1.43 billion).
Kremikovtzi's main creditors include Bulgarian state-owned companies Bulgargaz (gas provider), National Electric Company NEK and railway operator BDZ.
The shareholders have to make a final decision on the recovery plan after any potential readjustments by November 9, 2009.