Bulgaria Proceeds with Legal Steps To Speed Up Ammo Maker’s Sale

Bulgaria Proceeds with Legal Steps To Speed Up Ammo Maker’s Sale

In a bid to speed up the privatisation of heavily indebted ammunition manufacturer VMZ Sopot, parliament took the company off a list of entities of national security importance that could only be sold under a strategy approved by the MPs.

VMZ Sopot's deteriorating financial state could lead to bankruptcy, in which case it was highly likely that its employees would not receive their salaries and the government would have to resort to the company's piecemeal sale, parliament has said.

On Thursday, workers of the indebted arms maker were forced to take more than two weeks off, the Bulgarian National Radio reported and recalled that the plant's management and local trade unions have agreed to lay off 600 workers. 

On January 14, the government's privatisation agency terminated the procedure for the sale of VMZ Sopot after the sole potential buyer, local company Emko, failed to submit the required bank guarantee of 3.0 million euro ($4.06 million).

The company, located in Sopot, in central Bulgaria, manufactures aviation and antitank missiles and artillery ammunition. 

 

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