BULGARIA'S FIBANK PROVIDES ENTIRE FINANCING FOR KREMIKOVTZI BUYER

Bulgaria's First Investment Bank (Fibank) has provided the entire sum of 316 million leva for the takeover of indebted steel mill Kremikovtzi, the lender said on April 15 2011.

The amount is covered by receivables on the agreements with foreign contractors, which stipulate the sale of the plant's production assets, it said.

According to the statement, Fibank has provided bridge financing to Nadin Metals Trade and Velpet Konsult, strategic partners of the single company that put in a bid in the tender for the plant on April 12, Eltrade Company.

The announcement came two days after the bank said it had extended a 59 million euro loan to Eltrade without clarifying that it had provided the entire sum for the acquisition.

In the meantime, the National Revenue Agency (NRE) said it was starting a tax audit of the buyer's owner, 26-year old construction engineer Lachezar Varnadjiev. The probe is intended to examine the origin of funds needed for the acquisition, all transactions of Eltrade with other companies and individuals since the company's creation and any taxes that may have originated from cash flows before and after the deal.