Tungsram to Undergo Liquidation
Hungarian lighting company Tungsram on Tuesday said it will undergo liquidation after failing to reach an agreement with creditor Magyar Eximbank, according to a report by state news wire MTI.
Troubled Tungsram filed for bankruptcy protection in the spring, but the deadline for reaching an agreement with its creditors runs out in mid-November, the company noted. On Monday, Tungsram's second offer to work out a deal with Magyar Eximbank was rejected by the lender, it said.
Tungsram intends to continue operating while under liquidation but will lay off 750 people.
The company was bought out by its chief executive, Jorg Bauer, from General Electric in 2018. Bauer had hoped to transition to a profitable business structure by transforming Tungsram's old businesses and expanding new activities, but the COVID pandemic's impact on business, global supply chain interruptions, and the war in Ukraine challenged the company.
Last year, Tungsram Operations had a HUF 6.5 bln loss on net sales revenue of HUF 70.7 bln, public records show.
Bamosz Investment Fund NAV Reaches HUF 15.624 tln in March
Hungary Condemns Iranian Attack on Israel
Share of 1st Time Home Buyers Climbs
Tribe Hotel Budapest Stadium Recognized at LIV Hospitality D...
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.
