CHIMCO BANKRUPTCY DEPENDS ON ENERGY MINISTER MILKO KOVACHEV
Another plant is about to go bankrupt. Andrey Breshkov, Head of the Sector Analysis Department at the Ministry of Economy, said that in two weeks the major creditors of Chimco - the National Electricity Company (NEC) and Bulgargas, will demand to declare the company insolvent if its managers fail to do so before them. However, NEC representatives said they have no such plans. The truth is that none of the two companies is able to demand the bankruptcy of the fertilizer plant without getting an order from the Energy Minister Milko Kovachev. On the other hand, the majority shareholders in the Vratsa-based plant - the Cyprian offshore companies AVST Trading and Jagoil Limited, warned a month ago they might take such a decision if Chimco failed to start operations by the year-end. Expectations that the insolvency claim will be submitted this week did not come true.The fertilizer plant has considerable debts to creditors which it will find difficult to pay off. The debts amount to BGN151MN. Bulgargas alone should be paid BGN70MN and NEC - BGN32MN. The only alternative that the fertilizer producer has in this situation is to be declared insolvent and get an adequate recovery plan.