Court Postpones Hearing on Insolvency Claim against Arms Maker VMZ Sopot
Thursday, 01 January 1970
The district court in the city of Plovdiv postponed for February 18 a hearing on an insolvency claim against state-owned arms manufacturer VMZ Sopot in order to allow the parties to present additional evidence.
The claim was filed by local machine construction company Mehanichen Zavod - Devin.
Last week, the energy ministry said VMZ Sopot should downsize its staff by some 60% to 1,200 in order to avoid bankruptcy and find a buyer. The ministry's statement was released following a decision by the country's privatisation agency to cancel a procedure for the sale of a 100% stake in the company after the sole candidate buyer, local company Emko, failed to submit a deposit guarantee of 3.0 million euro ($4.0 million).