November 22, 2008

Kremikovtzi workers urge government for protection

Bulgarian media reported that several hundred workers at Bulgarian steelmaker Kremikovtzi staged protests in Sofia on Tuesday to demand government help for the ailing mill.

Workers urged the Socialist led government to ensure a transparent sale of the indebted plant that would guarantee its future development and not lead to closure.

A Bulgarian court will hold the opening session later on Tuesday of an insolvency action brought by creditors against Kremikovtzi.

Kremikovtzi, which employs about 8,000 people, faces bankruptcy after its debt increased to BGL 1.7 billion (USD 1.35 billion) at the end of 2007.

Steel major ArcelorMittal and Ukrainian billionaire Mr Kostyantin Zhevago are both interested in taking over the steelmaker but say it must first be declared insolvent.