Shipping company Navigation Maritime Bulgare (NMB) became the owner of Varna Shipyard on Tuesday after it won the auction for the assets of the shipyard by bidding 35.5 million leva ($16 million).
The new owner was expected to pay the money by the end of this week.
“A tragic chapter in Varna Shipyard’s history, which lasted three years and three months, is about to end.
“Until now it was doomed to slow death, but now it stands a chance to start a second life,” Economy Minister Nikolai Vassilev said.
Vassilev, who attended Tuesday’s auction, declared the Government’s full support of the new owner.
“We have injected quite a lot of money, $9.5 million, into the company. It was very important to us to own the ships that soaked up so much money. Given the method of the sell-off, the only way was to bid within reasonable limits,” Said Geno Genov, director general of NMB, which was one of the creditors of the bankrupt company.
Genov added that Navigation Maritime Bulgare would not embark on adventurous policies at a time when the shipping company was facing difficulties. Detailed business plans would be drawn up instead, he said.
Navigation Maritime Bulgare bid against Eurometal Inc. Indonesia’s Sigasco failed to deposit the required 3.9 million leva ($1.8 million) on time, lawyer Stefan Stanoev of the firm representing it in Bulgaria said.
Kiriakou Group of Greece, the US Hogan Marine Group and Kleven Group from Norway, tipped as prospective buyers, did not take part in the auction.
The shipyard has a nearly 100-year history. It was the 18th largest in the world in the mid-1990s, when it incurred huge losses.
A procedure for the privatisation of a 75 per cent stake in the company opened on November 12, 1997, with the DFC international firm as consultants. The only potential buyer was Varna Shipyard Invest, an employee-management buyout company, which was attacked in court and no deal was made.
The company was declared bankrupt on July 8, 1999. On January 20, 2000, the Varna Court of Appeals quashed the bankruptcy procedure and prospective buyers were invited to come up with rehabilitation plans.
Camel Laird of Britain proposed a rehabilitation plan, which was approved at a meeting of the creditors on August 30, 2000. It was approved by the District Court, although 11 creditors petitioned against it. The biggest of them were Navigation Maritime Bulgare, Delfin 1 and Central Cooperative Bank. Meanwhile, bankruptcy proceedings were launched against Camel Laird.
The Supreme Court of Cassation overturned the decision of the Court of Appeals on October 18, 2001. The latter refused to approve the rehabilitation plan. The parties decided not to make further petitions so as to give a chance to potential investors.
In its capacity as the principal owner of the shipyard, the Economy Ministry filed for bankruptcy at the Varna District Court. A decision to put the company into liquidation was made on January 21, 2002.
The new owner was expected to pay the money by the end of this week.
“A tragic chapter in Varna Shipyard’s history, which lasted three years and three months, is about to end.
“Until now it was doomed to slow death, but now it stands a chance to start a second life,” Economy Minister Nikolai Vassilev said.
Vassilev, who attended Tuesday’s auction, declared the Government’s full support of the new owner.
“We have injected quite a lot of money, $9.5 million, into the company. It was very important to us to own the ships that soaked up so much money. Given the method of the sell-off, the only way was to bid within reasonable limits,” Said Geno Genov, director general of NMB, which was one of the creditors of the bankrupt company.
Genov added that Navigation Maritime Bulgare would not embark on adventurous policies at a time when the shipping company was facing difficulties. Detailed business plans would be drawn up instead, he said.
Navigation Maritime Bulgare bid against Eurometal Inc. Indonesia’s Sigasco failed to deposit the required 3.9 million leva ($1.8 million) on time, lawyer Stefan Stanoev of the firm representing it in Bulgaria said.
Kiriakou Group of Greece, the US Hogan Marine Group and Kleven Group from Norway, tipped as prospective buyers, did not take part in the auction.
The shipyard has a nearly 100-year history. It was the 18th largest in the world in the mid-1990s, when it incurred huge losses.
A procedure for the privatisation of a 75 per cent stake in the company opened on November 12, 1997, with the DFC international firm as consultants. The only potential buyer was Varna Shipyard Invest, an employee-management buyout company, which was attacked in court and no deal was made.
The company was declared bankrupt on July 8, 1999. On January 20, 2000, the Varna Court of Appeals quashed the bankruptcy procedure and prospective buyers were invited to come up with rehabilitation plans.
Camel Laird of Britain proposed a rehabilitation plan, which was approved at a meeting of the creditors on August 30, 2000. It was approved by the District Court, although 11 creditors petitioned against it. The biggest of them were Navigation Maritime Bulgare, Delfin 1 and Central Cooperative Bank. Meanwhile, bankruptcy proceedings were launched against Camel Laird.
The Supreme Court of Cassation overturned the decision of the Court of Appeals on October 18, 2001. The latter refused to approve the rehabilitation plan. The parties decided not to make further petitions so as to give a chance to potential investors.
In its capacity as the principal owner of the shipyard, the Economy Ministry filed for bankruptcy at the Varna District Court. A decision to put the company into liquidation was made on January 21, 2002.
