ArcelorMittal extends Euro 30 million to ailing Bulgarian steel mill

20 May 2008

Mumbai: ArcelorMittal has extended 30 million euros ($46.79 million) in emergency funding to Bulgaria's ailing steelmaker Kremikovtzi as the global steel giant looks to emerging economies for growth.

ArcelorMittal chairman Lakshmi Mittal and Ukrainian billionaire Kostyantin Zhevago had offered financial help to Kremikovtzi, Bulgaria's biggest steelmaker. Both companies were interested in taking over Kremikovtzi.

Pramod Mittal, the majority owner of Kremikovtzi and the younger brother of  Lakshmi Mittal, had put the mill up for sale after failing to provide funds for working capital and environmental upgrades.

Both bidders prefer the cash-strapped plant to go through the insolvency procedure before the sale is completed.

ArcelorMittal said it was willing to provide additional financial aid against Kremikovtzi's assets.

ArcelorMittal had earlier offered to invest $500 million in the plant over the next five years, once it acquires the mill's assets through a bankruptcy procedure.