Offshore corporation buys assets of Bulgarian OtsK for EUR 4.3mn.

By bne IntelliNews September 17, 2012
Bulgarian Harmony 2012, part of an offshore holding that was established in May 2012, is the new owner of Bulgarian lead and zinc producer OtsK, BNR reported. OtsK has been at risk of insolvency and its employees have been protesting over unpaid salaries amounting to over BGN 1.7mn. The producer has over BGN 350mn in debts. The assets of OtsK were put for sale in August in a bid to raise funds to settle liabilities to the company's creditors and ex-employees. Harmony 2012 has paid BGN 8.6mn for the assets, some 0.3mn above the starting price in the tender. Other participants in the tender were Bulgarian First Investment Bank, which is the largest creditor of OtsK and Finance and Consulting. The new owner plans to resume zinc production and invest in modernisation of the production. OTsK is the country's second largest lead and zinc producer, accounting for 20% of country's total lead and zinc output. The plant currently employs 484 workers. Some 100 employees have left since March.

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