Sofia News Agency reported that a total of seven companies have officially expressed interest in acquiring or investing in ailing steel mill Kremikovtzi.

The news agency reported that the most serious bidder is the Ukrainian based Smart Group controlled by Mr Vadim Novinsky which has submitted a EUR 200 million offer for Kremikovtzi including a five year rehabilitation plan.

Smart Group also aims to make investments in environment protection technologies. Moreover, the company will present its demands on state guarantees for Kremikovtzi within the following days.

Among the bidders are a consortium between Czech investment company ML Moran and consultancy A T Kearney, Bulgarian Valentin Zahariev, owner of lead and zinc smelter OCK, Russian company Prominvest and Brazilian CSN steel maker.

ML Moran has offered to finance the ailing plant enabling it to buy raw materials, manufacture and sell its production.

Furthermore, Prominvest and an unnamed Italian company have offered to provide raw materials and working capital to Kremikovtzi in exchange for state guarantees.

Mr Valentin Zahariev former owner of Kremikovtzi has offered to run the plant after setting up a new company, while he aims to buy out the assets on sale. Meanwhile, Bulgarian metal wastes trader Econmetal Engineering offered to provide 60.000 tonnes of raw materials and then realize the manufactured products on the market.

Kremikovtsi seeks a new investor that will pay its debts to the Bulgarian state and the bondholders in installments.