HOPES of reviving the insolvent Vratsa-based fertiliser plant Chimco surfaced after news that a Russian gas-trading company might become involved with the plant.

Russia's Gazexport would deliver natural gas directly to Chimco if the rehabilitation plan submitted by Novo Chimco AD was approved at the general meeting of  the insolvent company's creditors, said Novo Chimco AD executive director Leonid Berenbaum
on September 15. Berenbaum cited an official letter sent by Gazexport general manager Alexander Medvedev to Economy and Energy Minister Roumen Ovcharov.

The letter showed understanding of the importance attached by the Bulgarian Government to the urgent rehabilitation of the plant in Vratsa, Berenbaum said. The natural gas needed for the operation of the production facilities at Chimco has been agreed upon and will be provided by Gazexport subsidiary Centrix Energy, the letter says.

In conclusion Medvedev expressed his conviction that Gazexport's commitment to the rehabilitation of Chimco would facilitate the decision-making process of the Bulgarian Government, Berenbaum said.

Inter RAO-Bulgaria, a subsidiary of another Russian company - RAO United Energy Systems (UES) - has also submitted a rehabilitation plan for the fertiliser plant.

However, the general meeting of Chimco shareholders that was scheduled to take place on September 19 has been postponed until October 1 due to lack of quorum. Representatives of only 2.8 per cent of the company's capital were present at the meeting, which had to approve the management bodies' report, the annual financial report and the auditor's report for 2004.

The shareholders also had to accept changes in the managing bodies and the statute of the company. The representatives of the Cypriot-based A.V.S.T., which holds 36.442 per cent of Chimco's shares, had to be removed from the supervisory board. They will most probably be replaced by Inter RAO's experts. Together with connected persons, Inter RAO holds the majority package in the company.
Nordic Oil, a Norway-registered subsidiary of Russia's RAO UES and Atomstroyexport, holds 34 per cent in Inter RAO. Other shareholders are companies from the UK, the US, Finland and Bulgaria.

A meeting of Chimco's creditors is scheduled for September 30 to approve one of the two rehabilitation programmes that have been submitted to the court. The main creditors of the enterprise include the state-owned gas supplier Bulgargaz and the National Electric Company.