The company still has to pay 20 per cent of workers for February salaries and food allowances for December 2007 and January 2008, Militzi said. Meanwhile ArcelorMittal representatives, in a meeting with the Bulgarian Energy and Economy Minister Petar Dimitrov on Wednesday, confirmed their interest in acquiring Kremikovtzi. Lakshmi Mittal, the older brother of Pramod Mittal, who now owns 71 per cent in Kremikovtzi, is one of at least two potential investors left in the race for Kremikovtzi. US Steel has withdrawn from the race for the plant, while Ukranian billionaire Rinat Ahmetov too appears to have lost interest, Bulgarian daily The Sofia Echo reported. |
The Bulgarian government had sold 71 per cent stake in the plant to Bulgarian Finmetals Group in 1999 for a token amount of one dollar, along with its outstanding debts. Later in 2005, Global Steel acquired Finmetals and got the control of the mill as well.
More From This Section
Meanwhile, Indian-born steel magnate Lakshmi Mittal is expected to arrive in Sofia for talks with Bulgarian Premier Sergei Stanishev about the future of Bulgaria's biggest steel mill Kremikovtzi next week.
Lakshmi Mittal is willing to offer 50 million Euros, just one third of his brother's 150 million euro valuation of Kremikovtzi, the Sunday Times had recently reported.
The holders of Kremikovtzi's 325-million-euro bond issue, who are understood to be pressurizing Pramod Mittal into selling his stake, are ready to liquidate the mill's assets unless they find an investor willing to pay out 101 per cent of the bond principal.
Bulgaria's Government, which owns 25 per cent in Kremikovtzi, has staunchly maintained that it would block any move in that sense.
The plant has been in the midst of labour unrest and also faces the possibility of being re-nationalised by the Bulgarian government.