Indian firm leads line-up to buy GTV
Wednesday, June 28, 2006, 14:06
Hungary's electric public transport vehicle maker Ganz Transelektro Villamossági Rt (GTV) has a line-up of investors from around the world ready to buy the beleaguered firm, business daily Világgazdaság reported on Wednesday.
The investors competing to buy GTV include Indian firm Pauwels, based in Belgium, Italian ASI Ansaldo, American Patriarch Partners, as well as two companies from Kuwait and one from Germany.
GTV is being sold in order to avoid liquidation. The company is expected to be declared insolvent at a board meeting on Friday. While negotiations are going on with all interested parties, Pauwels appears the most likely to win. The company's president Gyula Tímár said negotiations with Pauwels are serious, though many issues remain unresolved. A decision is expected to be made in a week.
Selling GTV hinges on coming to an agreement with its creditor banks on the status of its debts worth Ft 10 billion. GTV needs capital quickly as a loan worth Ft 3 billion to cover operational costs had been used up by the end of May.