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Ministry declares Ikarus Egyedi strategically important enterprise

Hungarian bus manufacturer Ikarus Egyedi has been declared a strategically important enterprise at the request of the company as part of its bankruptcy filing, the Ministry for Innovation and Technology (ITM) said late on Tuesday.

Ikarus Egyedi announced on Monday it has filed for bankruptcy protection in order to manage the companyʼs payment difficulties. The management asked the government to take part in the reorganization process and to declare the company a strategically important enterprise. 

The ITM said that, with the decision, it is possible to keep the companyʼs assets, production equipment, supply stocks and knowledge together. The ministry noted that the government sees the development of domestic bus production as of major national economic interest, but continues to do so based on the activities of market players and not state-owned actors.

Public records show Ikarus Egyedi is owned by evopro Bus, Lanta-Consulting and Albaric Kft. It employs almost 200 workers. The company had revenues of HUF 5.65 billion in 2016.

In its report Monday, online news site index.hu emphasized that Ikarus Egyedi is not a successor company to the iconic Ikarus bus maker, which closed down in 2003, and that there is an ongoing legal dispute over ownership of the Ikarus brand with Műszertechnika Holding, a company of one-time Ikarus chairman Gábor Széles.

In a fresh development today, the board of Budapest transport company BKV Zrt. announced the cancellation of a public procurement order for 30 Modulo articulated buses from Ikarus Egyedi, business news site vg.hu reported. Ikarus Egyedi had delivered only 10 buses by expiry of the April delivery deadline.