Stake of 50% in Troubled Lead-Zinc Smelter Put Up for Sale

Stake of 50% in Troubled Lead-Zinc Smelter Put Up for Sale

A private bailiff has listed for sale 50% of Bulgaria's largest non-ferrous metal works, the Lead and Zinc Complex of Kardzhali, OTzK.

The sale notice, published on the website of a local private bailiff, invites bids for assets covering an area of 162,000 square metres, including OTzK's entire zinc production facilities, Capital Daily reports. The initial price is set at over 8.3 million levs, as bids will be accepted until September 13.

The notice does not name the creditor who requested the sale but reports in other local media say it is First Investment Bank.  According to Capital, OTzK owes the bank some 54 million levs.

Information about the exact size of OTzK's debts is not available. However, prime minister Boiko Borisov has said they amount to some 300 million levs. According to the company's latest financial report filed with the Bulgarian stock exchange, OTzK's long-term liabilities stood at 128.9 million levs, including 93.3 million levs of bank loans, by the end of March.  Short-term liabilities totalled 65.3 million levs, including 1.8 million levs in loans.

In an interview for Capital Daily several months ago, OTzK's owner Valentin Zahariev said the plant owes 90 million levs to BNP Paribas, 75 million levs to First Investment Bank and some 20 million levs to other entities.

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