Bulgarian government to pen Kremikovtzi plan

A working group will be formed to work out ways to lift ailing steelmaker Kremikovtzi out of the doldrums while protecting to the utmost the interests of the state, workers and bondholders, a government media statement said.

The announcement came after Bulgarian Prime Minister Boiko Borissov met representatives of bondholders on August 10 2009.

In July, receiver Tsvetan Bankov proposed a rescue plan that would see claims converted into shareholders’ equity.

The plan was designed to keep the company and its assets in working mode, allowing it to sit out the economic downturn and sell assets when their value would have gone up.

Last week bondholders opposed the rescue plan and urged for a liquidation.

Acting Sofia mayor Minko Gerdjikov said the plant should be replaced by a technology park.

Economy minister Traycho Traykov said the government should distance itself as much as possible from the Kremikovtzi issue as the plant is private property.

During his term as Sofia mayor, Borissov said the plant should be torn down to make room for a business centre.

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