Third auction of Kremikovtzi assets also fails

Monday, 07 February 2011 17:19:48 (GMT+2)
The third auction of the assets owned by bankrupt Bulgarian steel giant Kremikovtzi has failed like the previous two auctions, since the only bidder did not present satisfactory documentation certifying that it had paid the required deposit, Sofia News Agency has reported. The bidder Victory Commerce, owned by Bulgarian businessman Georgi Manchev, has presented the copy of an email according to which Russia-based Rosbank transferred the required €20.28 million deposit for participation in the auction. However, Bulgarian Development Bank, which is carrying out the bankruptcy procedure, has stated in a press release that it has not received any deposit from the company. Mr. Manchev has said Victory Commerce is now withdrawing its bid. Bulgaria regrouped the assets of bankrupt Kremikovtzi to cut their price and tried to auction them for a third time on Monday, February 7, 2011, after failing to attract any bidders in the two previous auctions. For Monday's unsuccessful bid, the starting price was set at BGN 395 million (approx. $274 million), down 31 percent from the initial price at the first auction. As SteelOrbis previously reported, Kremikovtzi was placed in receivership in 2008, after failing to pay investors holding €325 million ($440 million) in bonds. Following the failure of attempts to sell Kremikovtzi to ArcelorMittal and Ukrainian businessman Konstantin Zhevago, owner of Vorskla Steel Bulgaria, Kremikovtzi was declared bankrupt at the end of May last year and cleared for liquidation in June. Tags: Bulgaria , Europe, steelmaking(sourced:steelorbis)