Government declares Pápai Hús of ‘elevated strategic importance’
The Hungarian government has declared troubled Pápai Hús as a company of “elevated strategic importance”, according to a decree published in the latest issue of official gazette Magyar Közlöny. As such, the company will receive special treatment in its bankruptcy procedure, Hungarian news agency MTI reported.
It was reported on Monday that a liquidation procedure had been initiated against troubled meat processing company Pápai Hús and asset manager Pápai Vagyonhasznosító és Értekesítő by the local government of Pápa, northwestern Hungary.
According to the local government, the asset manager, which used to be called Pápai Hús 1913, reached an agreement with its creditors in the summer of 2014, but a reorganization of the company never took place due to a shortage of capital, MTI reported on Monday. The local council added that the reserves of the companies were exhausted by November.
MTI reported that the company has paid its employeesʼ wages due early in November and is continuing production. The managing director of Pápai Vagyonhasznosító és Értekesítő did not comment on the liquidation procedure, MTI added.
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