CHINESE OR TRUSTEE TO MANAGE THE BULGARIAN STATE RAILWAYS

It is expected that a Chinese company will announce the acquisition of the Bulgarian State Railways, confidential sources explained.

Most likely the news will be announced during the XVth Session of the Bulgarian- Chinese Joint Commission for Economic Cooperation, which is to be held from today until Wednesday in Beijing and Shanghai.

If the privatization fails, as the only chance for BSR remains insolvency proceedings . The idea for the announcement of the holding's bankruptcy has been discussed recently also at the highest political levels, Standart learned.

The company has obligations of over BGN 600 million.

Subsidiaries " BDZ Passenger Services " and " BDZ Freight " will continue to work.

Declaring BSR is supported by much of the railway industry, and also by Bulgaria's Deputy Prime Minister and cabinet ministers . Still there is no unanimity of political will on part of the management of the BSP government, explained sources.

The decision declaring the "BDZ" bankrupt may be taken as early as June, when the negotiations with creditors will enter their last stage.