Sun, Nov 22 2009

City hall suggests four options to bail out Toplofikatsiya Sofia

Fri, Sep 26 2008 12:58 CET byElitsa Grancharova 158 Views

Andrei Ivanov, chairperson of Sofia municipal council said on September 26 that there are four different avenues to solve heating utlity Toplofikatsiya Sofia debt problem, Focus news agency reported.

The company has an outstanding debt of 70 million leva to state-owned gas company Bulgargaz, of which only 14 million lave have been paid as of September 23. Bulgargaz has threatened to cut its deliveries to the Sofia heating utility unless it is paid in full.

On September 26, mayor Boiko Borissov and the municipal council have presented the first three options to Economy and Energy Minister Petar Dimitrov. One is to write off the debt in exchange for stock, which would make the ministry the majority shareholder again, Ivanov told private broadcaster Nova Televizia.

The second option was for the city hall and the ministry, the two shareholders in the company, to increase the enterprise's equity capital with cash injections in order to pay off the debt. Yet another avenue was for Toplofikatsiya Sofia to take out a loan.

One alternative that was still under review was for the Sofia city hall to lend the money to the company, but it was still calculating how much money it would be able to loan.

There was no risk, however, that central heating or hot water for Sofia citizens would be cut because of Toplofikatsiya's outstanding debts, Ivanov said.

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