Although four months have passed since the privatisation contract between Nu Image and Boyana Film Studios was signed, the deal is not yet concluded.

Prospects were high that Nu Image would try to sue the state, Banker newspaper said. Company lawyer Ivan Todorov said that Nu Image would wait until May 30 and if the shares had not yet been transferred, it would start legal procedures against the state and Boyana Film director Evgeni Mihailov.

The problem arose after the state requested a 20-year mortgage to prevent future deals with the studio property. Mihailov refused to sign the mortgage contract prepared by Nu Image because the stated property area differed from the one in the notarial act.

Boyana Film and the Privatisation Agency requested a new revised mortgage but so far the American film company has been refusing. Mihailov said that Nu Image wanted to conclude a deal that was illegal and to avoid mortgage engagements.

According to the agreement Nu Image had to pay 12.224 million leva for 95 per cent of Boyana Film's shares. The company obliged itself to invest over 30 million leva in the film studio.