Sat, Nov 21 2009

Kremikovtzi talks enter final stage

Mon, Jan 26 2009 13:27 CET byDnevnik.bg 309 Views

Ukrainian company Smart Group and the Bulgarian Government have reached agreement in principle on its commitments if it is picked the new owner of Bulgaria's debt-ridden steel mill Kremikovtzi, said Deputy Economy Minister Nina Radeva, who took part in talks in the week ending January 23 2009.

The details will be included in a special memorandum to kick off a rescue plant for the plant.

In the final stage of the negotiations, the Ukrainian company will meet with creditors. Sources familiar with the matter said the state is unlikely to approve any action without securing the nod of bondholders.

Brazil's mining giant CSN, which did not arrive for talks with the economy ministry last week, is also in the race agreeing details with bondholders.

Last week it emerged that a court sitting on an appeal on a claim against Kremikovt for repayment of a 698 million leva state aid package, which placed the Government on top of the creditors' list with 35 per cent of total debts. If the claim is rejected, the Government's share will shrink to almost 18 per cent while bondholders will emerge on top with 43 per cent and will play the lead role at the creditors' meeting.

Kremikovtzi's bonds trade on the UTC market at seven to 10 per cent of face value.

Source: Dnevnik.bg 

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