Creditors okay IKR-Agrofert deal
Creditor banks of financially troubled Hungarian agribusiness IKR Zrt have approved the transfer of part of the company's activities plus debt to the Czech Republic-registered company Agrofert, IKR chief executive Attila Szaxon said Monday evening.
Szaxon said CIB, Erste, K&H, MKB, OTP and Raiffeisen banks had endorsed splitting IKR into two companies.
The company's agribusiness-financing as well as fertilizer, pesticide and seed sales business will go to IKR Agrocentrum. That company will be taken over, together with IKR's debt and other obligations, by Agrofert. IKR will retain the company's agricultural-machinery sales and related services.
KR, which currently has HUF 15.5 billion in outstanding loans, had revenue of HUF 50 billion in 2010, down from HUF 94 billion in 2009 and HUF 120 billion in 2008.
Last year IKR controlled about a third of Hungary's agricultural-machinery market, one-third of the chemical-fertilizer market, 15% of the pesticide and herbicide market and 14% of the seed market.
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.