Reuters reported that Ukrainian steel company Smart Holding is withdrawing from talks over the purchase of Bulgaria's insolvent steel mill Kremikovtzi KMKV.BB due to lack of support among the mill's creditors.

Smart Holding said it had proposed an investment plan worth EUR 220 million and a USD 60 million loan, while offering to pay back debt worth EUR 80 million across three years and turn the rest of the mill's debts into shares. It said However, while the Bulgarian government's position was constructive, the majority of the mill's creditors were against their restructuring plan.

It said in a statement that "Considering that the negotiations on choosing a strategic partner for Kremikovtzi are being dragged out indefinitely. Smart Holding was forced to take the decision of withdrawing from the negotiating process."

Bulgaria's economy and energy ministry has said Brazilian steelmaker CSN has also expressed interest in Kremikovtzi but no progress has been reported so far.

(Sourced from Reuter)