Bulgarian road builder Moststroy, which participates in the construction of the country’s high-profile Trakiya motorway, and three of its subsidiaries have filed for insolvency over their incapacity to pay their debts, the companies said in a statement.

Insolvency requests were submitted on October 6 2010 by the holding company and its units Moststroy-Plovdiv, Moststroy-Sofia and Moststroy-Veliko Turnovo.

Much of Moststroy’s debts involve a loan from United Bulgarian Bank (UBB) as well as machinery leasing with Interlease. In August, the leasing company terminated the contracts and got back its transport equipment and machinery.

Moststroy claims this prevented it from carrying out its operations, and all of its accounts were frozen to cover its leasing payments.

"The write-down of so many assets triggered a large booking loss for the companies," according to the statement.

Moststroy-Veliko Turnovo employees complained in August that they had not received wages since the beginning of the year. The company pointed the finger of blame at the time at the state, which has delayed payments to private contractor.

Moststroy’s financial reports reveal that its short-term liabilities have more than doubled over the past year and now account for more than 60 per cent of all assets. The total debt amounts to almost 28 million leva. Revenue totals just 893 000 leva although the company is part of the consortium that last month broke ground on the longest section of Trakiya motorway, linking Yambol and Karnobat. The tie-up is led by Holding Roads.

Source: Dnevnik.bg