The creditors of Bulgaria’s debt-ridden steel mill Kremikovtzi authorised the plant’s receiver, Tsvetan Bankov, to hold a tender and pick an appraiser for the company’s assets.

At their second meeting, which was held on June 12, creditors voted the steps to be taken in case the worst-case scenario unfolded and the business has to be wound up.

Bondholders, the biggest private creditor, have been pushing for a rescue plan, looking to maximise the worth of their receivables. The plan should be submitted by the end of the month. The receivables will be converted into equity capital but the ratio and the stake of each creditor have not been specified yet.

After investing in environmental facilities and working capital, the steelmaker will try to get by until a strategic investor shows interest in Kremikovtzi, sources familiar with the matter said.

At first, Kremikovtzi might resume operations of its electric arc furnaces that convert scrap into steel, as well as the cold and hot rolling mills. It will retain ownership of its other assets such as the blast furnaces to offer the new owner a wider choice of technological process.

Estimates have suggested that the plant’s staff could be cut down to less than 2000 people. About 1900 people of the 4900 Kremikovtzi employs are now being made redundant. No precise statistics is available on the company’s current personnel as many have quit without waiting for redundancy pay.

Source: Dnevnik