Listen to the audio version of this article (generated by AI).
Listen to the audio version of this article (generated by AI).
The filing was announced by owner Attila Balázs in a letter sent to employees on Wednesday afternoon. Balázs also confirmed the move to Telex.
According to the employee letter seen by Hungarian news outlet Telex, Bayer Construct decided to seek bankruptcy protection in light of “developments in recent months resulting in serious financial exposure,” including significant changes in the regulatory environment affecting certain projects under preparation, the government decision concerning the Zugló office complex and adverse market trends.
The company said it would continue operating during the bankruptcy proceedings and would seek to complete ongoing projects properly and pay partners carrying out construction work fairly.
The development comes amid a separate dispute involving the approximately 150,000 sqm office complex behind Bosnyák tér in Budapest’s District XIV.
Zugló Mayor András Rózsa said earlier this week that the district municipality could file a lawsuit against Bayer project company Zugló Városközpont Development Kft. in the fall, alleging that the company breached an agreement originally signed with the district in 2006 and subsequently amended several times.
A final decision on whether to launch the lawsuit could be taken by the district assembly on Sept. 3.
The case gained further significance after the government announced on Aug. 3 that it was withdrawing from the planned purchase of the development.
The state had previously signed a contract worth a net HUF 244 billion, later increased to HUF 254.8 bln, for seven office buildings that were intended to house several state institutions.
The government said Bayer had failed to remove the Zugló municipality’s pre-emption right from the properties’ land registry records by the deadline. The developer disputes that claim.
Producing journalism that is worthy of the name is a costly business. For over 30 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.
