Valentin Zahariev, the former majority shareholder of Bulgarian steel mill Kremikovtzi, plans to regain control of the debt-laden company, the businessman told Dnevnik. He said he has already sent a letter of intent to the court-appointed receiver of the steel mill and to Economy Minister Petar Dimitrov.

Under the plan, Zahariev's Intertrust holding will take charge of the plant under as an operator to get it back on its feet. The company will be paid an operator's fee. "At a later stage, say in three to five years, we may bid for some of the Kremikovtzi assets," said Zahariev.

Zahariev said Intertrust has prepared a environmental program that will ensure the steel maker is issued an integrated pollution prevention and control permit. He refused to say if there are plans to shut down some production facilities.

In 1999, Zahariev's Finmetals Holding bought Kremikovtzi for $1, undertaking to implement an investment program and settle the company's outstanding liabilities.

The new owner defaulted on the post-privatisation commitments, prompting a local court in 2005 to impound its 71 per cent stake in Kremikovtzi. Later that year, Zahariev sold Kremikovtzi to Pramod Mittal, the current majority shareholder of the steel mill, not only his shares in Kremikovtzi, but also the company that owns the impounded shares, Finmetals.

Earlier this year, Bulgaria's post-privatisation control agency won a 239 million leva court ruling against Finmetals over unfulfilled post-privatisation commitments. The company has lodged an appeal against that ruling.

Read the full story on Dnevnik.bg