A Bulgarian steel mill owned by Indian businessman Pramod Mittal is bankrupt, a court ruled Wednesday, paving the way for the plant's sale, reported dpa.
Ukrainian billionaire Konstantin Zhivago and ArcelorMittal, the world's largest steelmaker, have expressed interest in the communist-era Kremikovtsi plant, which reportedly has debts of at least 800 million euros (1.25 billion dollars).
The Sofia District Court's decision bolstered a government drive to make Pramod Mittal sell his 71-per-cent stake, after he failed to secure fresh money for plant operations and environmental protection.
One of Zhevago's companies and several other businesses had filed the insolvency claim, the Sofia News Agency reported.
Kremikovtsi employs some 8,000 workers, but has recently run at about one third of capacity. Labour unions have repeatedly staged protests to press for solutions to the mill's troubles.
The government retains a 25.3-per-cent stake in the steelworks.
Pramod Mittal is the younger brother of ArcelorMittal chief executive Lakshmi Mittal. In May, ArcelorMittal granted a 30-million- euro emergency loan to the plant.