Malev to get HUF 4.2bn owner loan

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Hungarian national carrier Malev will get a HUF 4.2bn owner loan to cover its short-term financing, the Hungarian National Asset Management Company (MNV) told MTI on Monday.

The three-year loan must be repaid in a single lump sum upon maturity.

A general meeting of Malev shareholders on Monday was suspended at the request of the MNV before settlement of the airline’s capital position, an item on the agenda, could be discussed. The meeting was scheduled to reconvene on December 21, 2011.

Malev’s capital was last raised, by HUF 18.5bn, on a decision taken at a general meeting on August 23. The raise involved the conversion of HUF 9.98bn of debt from 2010 into equity and a further HUF 8.52bn in cash from the budget allocation for "extraordinary government measures".

The capital raise was necessary because Malev closed 2010 with negative net assets of HUF 22.5bn. In 2011, Malev’s capital was raised by HUF 2.5bn in April and by HUF 4.5bn in June.

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