Bulgarian zinc smelter goes on public sale

The zinc production units of OTZK, once Bulgaria's second largest lead and zinc smelter, will be put up for sale after the smelter failed to pay its debts and its workers, a private enforcement agent said on Monday. The smelter, which stopped its zinc production in December last year, has been unable to pay its dues to French BNP Paribas and Bulgarian Fibank, as well as other creditors, estimated in total at about 190 million levs ($119.98 million).

The smelter, majority-owned by Bulgarian company Intertrust Holding, has also failed to pay to its workers since last year and over 260 cases against it have been filed in court, private enforcement agent Rosen Sirakov said. "The assets were listed as collateral against a loan by Fibank. The bank has a court order to take over them and decided to go with a public sale," Sirakov said.

The smelter's creditors are also allowed to take part in the sale, bids for which will be accepted until September 13. The initial price tag is for 8.3 million levs. OTZK, situated in the southern city of Kardzhali, has seen its debt rising after the environment ministry blocked its lead production last year over pollution concerns.

The zinc production has virtually stopped since December when the plant was closed for repairs. It has since tried twice to restart it but without success. OTZK and Intertrust Holding were not available to comment. It produced 16,600 tonnes of zinc in 2011 and 6,500 tonnes of lead in 2011. Trade unions hope that the zinc production can be bought out by Fibank which can then try to find investors for the zinc plant and restart production.

http://www.brecorder.com/market-data/stocks-a-bonds/0/1227504/