Банкеръ Weekly



After a two month delay the Ministry of Economy has finally defined the liquidation evaluation of the Botevgrad based bus producer Chavdar. The candidates for the four authonomous parts of the company will have to pay totally BGL20.83 for 100% of the property. The evaluation includes only Chavdar's long term material assets.
In the meantime the amount of uncollected receivables which practically left the company idle for years is not included in the evaluation. While the Bourgas municipality liabilities to the company plus the interests already add up to USD5MN. The debt accumulated in the 90s from unpaid supply of vehicles for the Bourgas public transport. Since then Chavdar is struggling for its money, which might have helped it to start operation anew. Yet the case is to be settled by Bourgas District Court.
Nikolay Nikolov, the company liquidator expects a positive settlement of that matter by the Ministry of Finance through an extrajudicial settlement. This expected development is based on the fact that Chavdar has used a credit of USD4.1MN from the State Fund for Reconstruction and Development (SFRD) to produce the buses for the Bourgas deal. So that the Ministry of Finance is expected to approve the tri-sided operation thus clearing the Botevgrad based plant liabilities to the former SFRD, which assets were transferred to the state budget.
If the operation is successful, the company liabilities will be reduced to BGL8MN - an amount which is much smaller than its assets. Chavdar has incurred liabilities to the Botevgrad municipality, to the social insurance system, to the state budget, as well as to its employees and suppliers.
The sale through liquidation leads only to complete stagnation in companies like Chavdar and Vidachim. Yet it is clear that their assets will be sold at a price buyers are willing to pay.
German, Italian, Saudi Arabian and local companies showed interest in the Botevgrad based production shops. Yet, only a couple of months later it will be clear whether potential investors will place at least one offer or the fixed minimum price will make them withdraw.

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