Indian businessman Pramod Mittal could lose Kremikovtzi for failing to make timely payments on a bond issue guaranteed with the steel mill's assets, mediapool.bg reported on February 4, 2008.

Mittal cannot even negotiate the sale of the steelworks, as his 71% stake could be soon impounded unless he buys back the 325 million euro bonds in full, according to one hedge fund that owns Kremikovtzi bonds, quoted by mediapool.bg.

The bond holders are in an advanced stage of the process and could take over Kremikovtzi within weeks, QVT Fund LP was quoted as saying.

Its statement comes at a time when the Cabinet, which owns a 25% stake in the steelworks, is attempting to mediate a deal between Mittal and potential investors that would invest the 120-140 million euro necessary to re-launch Kremikovtzi's environmental upgrade plan and boost its cash flow to keep it operational, mediapool.bg said.

Mittal arrived in Sofia last week for talks with Ukrainian billionaire Konstantin Zhevago, with US Steel also reported to be interested, but pulled out of any deal, promising instead to inject 20 million euro to solve the current shortage of funds.

Thousands of Kremikovtzi's employees protested in Sofia last week, blaming Mittal for the delay in the implementation of the steel mill's development and modernisation plan, demanding the Cabinet took a more active role in solving the steelworks' plight.

Their demands were backed by Bulgaria's steel industry union, the Branch Chamber of Ferrous and Non-Ferrous Metallurgy, who argued the Government had to ensure the continued operation of Kremikovtzi, as opposed to its dismantling to make way for real estate development, advocated by the Sofia city hall.