Bulgaria's largest steel mill Kremikovtzi said on February 19 2008 it was actively seeking strategic partners and hoped to reach an agreement within three months, investor.bg reported.

"Majority shareholder Pramod Mittal has already announced his decision to find strategic partners within three months, so that all parties interested in continued production are satisfied," the steelworks said in a letter to the Government, quoted by investor.bg.

Guntupalli Jagannadham, appointed chief executive earlier this month, has been tasked to ensure that the company continued operations as normal.

Kremikovtzi had its deliveries disrupted shortly last week, when state railways BDZ refused to service the steel mill because of overdue payments, but the two companies have since agreed on a schedule of repayment.

"We understand that [power grid operator] NEC, BDZ and [gas company] Bulgargaz are commercial enterprises, with their own expenditures and problems. Their desire for Kremikovtzi to pay back old debts as soon as possible would get in the way of current commitments," the still mill said, as quoted by investor.bg.

Kremikovtzi paid suppliers a total 267 million leva last year, both in old and current servicing fees, but did not disclose how much it still owed.

Current debts to suppliers would be paid off within three months if the Cabinet ensured a normal operating environment, and payments on old debts would resume afterward, the steelworks said.

Despite its backlog of overdue payments, Kremikovtzi was still an attractive morsel for investors, not least due to the large amount of land it owns in the eastern suburbs of Sofia, which could cost hundreds of millions if real estate developers are allowed to buy it and build on it. Among the parties interested in such an outcome is also the Sofia city hall, which wants the steelworks shut down, arguing it was the single biggest polluter in the city, and the land redeveloped.