The elder brother of Pramod Mittal, who currently owns the majority stake in Bulgaria's Kremikovtzi steel mill – Lakshmi, told the Cabinet he would be ready to restructure the steelworks' debt, including its bond issue and the loan from the State Reconstruction and Development Fund, Bulgarian Economy and Energy Minister Petar Dimitrov said, as quoted by Dnevnik daily.

As reported by The Sofia Echo earlier, the European steel conglomerate ArcelorMittal, majority-owned by Lakshmi Mittal, put in a letter of interest with the Economy and Energy Ministry regarding the debt-laden steel mill.

Lakshmi Mittal apparently committed to a programme to boost operational income and operational margins, as well as the value of the steel works. The businessman promised to “improve the results of the holding, which are to be in compliance with all environmental legislation at local, regional and international level,” as quoted by Dimitrov.

As well as The restructuring of the 325 million euro bond and the state loan, Mittal committed to settle late payments for tax, social security contributions and other debts owed by Kremikovtzi.

Dimitrov said that Kremikovtzi's majority owner and Merrill Lynch, hired as a consultant on the sale, will be the ones to decide whether to strike an agreement with Arcelor. He said, though, that the state would not sell its 25 per cent stake. The involvement of the state in the takeover negotiations only referred to the environmental programme and viability of the proposed modernisation plans.

Lakshmi Mittal built his empire from the overseas holdings inherited from his father's company, while younger brothers Pramod and Vinod got the Indian assets. Lakshmi's success was largely based on restructuring communist-era steelworks in Eastern Europe, such as Sidex in neighbouring Romania, and he is now poised to repeat the feat at Kremikovtzi.

Turkish company Erdemir, Ukrainian investor Konstantin Zhevago, who owns London-listed iron ore producer Ferrexpo, and the group of Ukrainian tycoon Rinat Akhmetov, Kryvorizhstal, have all shown interest in Kremikovtzi, Dimitrov said.

US Steel, which made its interest known through US ambassador to Bulgaria John Beyrle, did not sent a letter of intent, but has hired a legal representative for Bulgaria to hold talks with the steel mill's management, Dimitrov said.