Vorskla Steel Bulgaria, part of the Konstantin Zhevago-controlled financial group Finance and Credit, has announced that Sofia City Court has confirmed its property rights regarding raw material and production delivered previously to Bulgaria's largest steelmaker Kremikovtzi within the framework of the tolling agreement between the two companies.
Vorskla Steel has successfully proved the existing debts of Kremikovtzi, and has also refuted the mill's claims of a raw material undersupply. Accordingly, Kremikovtzi owes Vorskla Steel over BGN 9.8 million (approx. $6.4 million), as well as over 28,000 mt of hot rolled coils, for which it delivered over 60,000 mt of raw material.
Meanwhile, Kremikovtzi's management has said that it is unable to confirm the receipt of the deliveries in question, stating that it does not have information about the location of the products and raw material. Vorskla Steel intends to ask for an investigation and for the recovery of debts.