E-Star fails to reach agreement with creditors
Troubled energy services company E-Star Alternative said it failed to reach a deal with its creditors at talks on Wednesday, but they agreed to extend E-Star's payment deadline by 120 days. The company said earlier it would propose to creditors the conversion of its liabilities into equity. Under the proposal, creditors were to get one of 50 million new shares issued for every HUF 367 E-Star owes. The total amount of the equity in the transaction would have added up to HUF 18.35 billion, roughly level with the company's registered liabilities. E-Star is under bankruptcy protection at present.
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.