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.
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