Impelled kremikovtzi in dire straits
Posted by seshdotcom on April 7, 2008
Kremikovtzi is the Largest metalworking company in Bulgaria.In 1999 71% of company’s share was Bought by Daru Metals an Industrial Group in Bulgaria and later its name was changed to Finmetals Holdings and in 2005 100% of the Kremikovtzi’s share was sold to GSHL->Global Steel Holdings Limited owned by Mr.Pramod Mittal brother of Steel Tycoon Mr.Lakshmi Mittal.Mr.Pramod Mittal did several developments and renovated the comapny and in an interest to reach the Pinnacle conducted various investment Program to increase the quality and somehow attract the Public so that they invest in thier Company.
Products manufactured:Cast Iron,
Under what sort of Pressure is Kremikovtzi:
The investors and capitalists of the Kremikovtzi are demandaing for Quittance because the company defaulted in one of the annual Payments related to the Kremikovtzi’s 508 USD Bond.Now the situation is so bad that the company could not pay its workers.The Government of Bulgaria said that it would co-operate with anyone who would own 50% of the company’s Bond.The Huge debt which it has got to pay to the Creditors has put the Pressure on company’s Cash Flow.
Is Lakshmi Mittal a Contender to Kremikovtzi:
Reports say that LN Mittal brother of the Pramod Mittal is a strong contender who is competing with Mr.Zhevago and is waiting to reach an deal and he has put a Question Mark on many of the minds by accumulating bonds of the company from the market for which the Bulgarian Government has alos expressed Interest by saying” it would co-operate with anyone who would own 50% of the company’s Bond”
In one of the interview to an daily Mr.Pramod Mittal said that “We are looking for an Strategic investor who can certainly turn around the things we don’t want to comment more on this subject“