Negotiations for the potential sale of Bulgarian steelworks Kremikovtzi have not resulted in any agreement, its Indian owner Pramod Mittal said on February 1, as quoted by Dnevnik daily.

It is unclear whether talks will continue over the weekend, but Mittal said he would appoint an outside adviser to draft a strategy for improving the steel mill's cash flow. He declined to name the adviser, but hinted it would be a big-name international bank, the daily said.

Cash flow problems have delayed payment of wages to Kremikovtzi's 6500 employees, who have protested this week in Sofia, but payments should resume next week with Mittal  pledging to inject 20 million euro to solve the current shortage of funds.

Trade unions claimed the money is yet to show up on the steel mill's accounts and threatened to renew their protests if payments are not resumed on February 4.

The trade unions also claimed Mittal was lax in implementing Kremikovtzi's development and modernisation plan, demanding the Cabinet took a more active role in solving the steelworks' plight.

They were backed by the steel industry union, the Branch Chamber of Ferrous and Non-Ferrous Metallurgy, who blamed rising electricity, gas and railway transport prices for the precarious state of the industry as a whole.

The industry union also backed the continued operation of Kremikovtzi, as opposed to its dismantling to make way for real estate development, advocated by the Sofia city hall, and demanded more Government support for the heavy industry.

Earlier this week, Mittal confirmed media speculation that claimed he was ready to sell the steel mill to Ukrainian billionaire Kostantin Zhevago by arriving in Sofia to hold final talks on the issue, with US Steel reportedly showing interest in the steelworks too.

The Government said last week Mittal had assured Stanishev that Global Steel Holdings Ltd (GSHL) would not strike any deal without government consent.