Zsolnay staff leaves en masse, amid fear of liquidation
Some 130 employees of porcelain maker Zsolnay resigned from their jobs effective immediately, abandoning the company for the newly formed Ledina Kerámia, the latter’s legal representative told Hungarian news agency MTI today.
Ledina Kerámia was created by Zsolnay’s minority owner Pécs Council, to take over operations from Zsolnay in the event that it is liquidated pursuant to the Hungarian Development Bank (MFB) canceling the HUF 413 million loan provided to Zsolnay in the event that the company fails to comply with the repayment schedule of less than two weeks.
The council of Pécs believes the liquidation is inevitable and the staff is transferring to the new company to save a heritage of a company that spans more than one and a half centuries, MTI reported.
Porcelain maker Zsolnay Porcelánmanufaktúra said on June 3 that it is suing state-owned Hungarian Development Bank (MFB) for the cancellation of its loan, according to Hungarian news agency MTI.
According to earlier reports, the local council of Pécs had already set up Ledina Kerámia to take over the operation of the porcelain manufacturer in the event that it is liquidated.
Najari, a Syrian-born businessman who acquired a 74.5% majority stake in the company from now minority owner Pécs local council in 2013, in a statement earlier aired concerns about what he believes could be an “intended hostile takeover” supported by “representatives of the minority owner”.
Following this statement, the majority owner announced at a general meeting that he had initiated the squeeze-out of the companyʼs minority owner.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.