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Banks call back Transelektro loans

The creditors of Ganz Transelektro Villamossági Rt (GTV), which exercises ownership rights over the troubled holding company Transelektro, have called back Ft 10 billion in loans and Ft 6 billion in guarantees made to the company; however, if GTV is forced into liquidation, it will not mean the end for Transelektro's other units, CEO Gyula Tímár announced on Sunday.

 In the interest of the holding company's other three units, Ganz Transelektro Közlekedési, Transelektro Energetikai and Transelektro Ganz-Rock, GTV has transferred its stakes in these companies to TFSZ, a company set up by three of GTV's owners with registered capital of Ft 1 billion, and Transelektro Management Kft, in which the same three GTV owners hold 77%. TFSZ also aims to purchase the 42% stake in GTV held by the Hungarian Development Bank Rt (MFB).
Tímár said on Thursday that agreements with creditor banks had already been reached in the case of Transelektro Energetikai and Transelektro Ganz-Rock, but they must still be approved by the banks' boards by June 9. The two companies have combined loans of Ft 8 billion-Ft 9 billion, debts to suppliers of Ft 4 billion-Ft 5 billion and other liabilities of Ft 4 billion-Ft 5 billion. In the case of Ganz Transelektro Közlekedési, MKB Bank Rt and KDB Bank Rt did not call back their loans to the company as of May 31, so talks with the creditors will continue, Tímár said.