Varna shipyard's bankruptcy declaration procedure would be over by Christmas 2006, Varna Regional Court (VRC) said.

The procedure began in 1999, Darik Radio said.

Shipyard possessions were sold out in the past several years. The sum earned was divided between the two big creditors and the nearly 5000 employees of the shipyard.

The total sum divided was 37.5 million leva. The majority, 35.5 million leva, was given to the creditors, Darik said.

Varna shipyard still owes 146.5 million leva to more than 5000 creditors. Only a small part of the debt, 6.8 million leva, had to be payed to the employees. The shipyard owes the other 139.5 million leva to the state and commercial creditors, but is unable to pay.

Shipyard income in the past year and a half was spent only on document archives.

VRC scheduled the final meeting of Varna shipyard creditors for December 15 2006 after which a decision on declaring bankruptcy will be taken.