E-Star said the city had failed to pay "liabilities exceeding HUF 100 million" for almost a year and showed no willingness for consultations. The company said it would collect the amount owed plus another HUF 100 million in an exit option fee caused by the termination from the municipality.
E-Star said it would take similar steps against its non-paying local council clients until the autumn of this year. E-Star Alternatív is "financing the state budget with more than HUF 1.5 billion and we are unable to augment this amount. From our state-related clients, only 25% of revenues have flown in during the current year. The actions to be taken will affect almost 300 institutions”, the statement cited CEO Csaba Soós.
Commenting on the announcement, Hódmezővásárhely titular chief notary Ágnes Korsós said the city had cancelled its contract with E-Star unit RFV ESCO effective September 2, 2011 because of serious contractual and legal infringements by the company. Hódmezővásárhely paid the company everything it owed until the time of the contract's cancellation, she added.
