The entire accounting documentation of the metallurgical plant Kremikovtsi will be audited by inspectors, appointed by Sofia District Court on the request of Deputy Prime Minister and Economy Minister Lidya Shuleva.
The Government decided on July 29 to authorise Shuleva to take action, which is necessary after the report by the ad-hoc parliamentary committee that checked the safety and health conditions of employees working at the Kremikovtsi plant.
Finance Minister Milen Velchev will have to take urgent measures on collecting the state receivables from Kremikovtsi, the Council of Ministers' decision also states. The company owes 100 million leva to National Social Security Institute, and allegedly over $30 million in penalties and interest rate arrears due to failing to implement post-privatisation commitments. Other creditors of the plant include the Bulgarian State Railways (BDZ) and Bulgargaz.
Earlier last week, local newspapers reported that representatives of the second largest steel manufacturing company in the world - Indian ISPAT - were already reviewing Kremikovtsi and will take over part of the management of the factory.
Alok Gupta from ISPAT, who was officially presented at a managerial session on July 27, will be appointed to the company's board of directors. ISPAT wanted to buy part of Kremikovtsi's operations but transfer of company shares is currently blocked by the court, on request by the Post-privatisation Control Agency (PPCA) and the deal is currently impossible to execute.
Meanwhile, one of the suppliers of Kremikovtsi has filed a court request to initiate insolvency procedures due to the serious amount of arrears accumulated by Kre-mikovtsi. The management of the steel manufacturer is expected to appeal the request, to avoid a court decision appointing insolvency trustees to the company. The court can initiate insolvency procedures if Kremikovtsi has failed to service its liabilities for more than 60 days.
Sofia City Court judge Lilia Ilieva shed some light on the insolvency case against Kremikovtzi on July 29, by saying that she is yet to act on the petition filed by the creditor - Stroikomplekt.
Ilieva said the insolvency proceedings have not yet started. A hearing has been scheduled for September 27. In the meantime, Kremikovtzi and Stroikomplekt can settle the matter out of court, if the metallurgical plant makes satisfactory arrangements for debts outstanding.
-Business staff
The Government decided on July 29 to authorise Shuleva to take action, which is necessary after the report by the ad-hoc parliamentary committee that checked the safety and health conditions of employees working at the Kremikovtsi plant.
Finance Minister Milen Velchev will have to take urgent measures on collecting the state receivables from Kremikovtsi, the Council of Ministers' decision also states. The company owes 100 million leva to National Social Security Institute, and allegedly over $30 million in penalties and interest rate arrears due to failing to implement post-privatisation commitments. Other creditors of the plant include the Bulgarian State Railways (BDZ) and Bulgargaz.
Earlier last week, local newspapers reported that representatives of the second largest steel manufacturing company in the world - Indian ISPAT - were already reviewing Kremikovtsi and will take over part of the management of the factory.
Alok Gupta from ISPAT, who was officially presented at a managerial session on July 27, will be appointed to the company's board of directors. ISPAT wanted to buy part of Kremikovtsi's operations but transfer of company shares is currently blocked by the court, on request by the Post-privatisation Control Agency (PPCA) and the deal is currently impossible to execute.
Meanwhile, one of the suppliers of Kremikovtsi has filed a court request to initiate insolvency procedures due to the serious amount of arrears accumulated by Kre-mikovtsi. The management of the steel manufacturer is expected to appeal the request, to avoid a court decision appointing insolvency trustees to the company. The court can initiate insolvency procedures if Kremikovtsi has failed to service its liabilities for more than 60 days.
Sofia City Court judge Lilia Ilieva shed some light on the insolvency case against Kremikovtzi on July 29, by saying that she is yet to act on the petition filed by the creditor - Stroikomplekt.
Ilieva said the insolvency proceedings have not yet started. A hearing has been scheduled for September 27. In the meantime, Kremikovtzi and Stroikomplekt can settle the matter out of court, if the metallurgical plant makes satisfactory arrangements for debts outstanding.
-Business staff
