UPDATE - Govt declares Malev 'strategic company' in decree
The government on Monday declared national carrier Malev a "business of prime strategic significance".
The government made the declaration in a decree dated January 30 as mandated by a paragraph in the Act on Bankruptcy and Liquidation Procedures. The decree came into force at 7am on Monday.
In the Act on Bankruptcy and Liquidation Procedures, a government declaration of a company’s "strategic significance" prevents any creditor of the company from initiating a bankruptcy procedure against it.
The decree cites paragraphs in the act which authorise the government to make the declaration of troubled companies at which the settlement of debts, agreement with creditors or reorganisation is in the national economic interest.
The declaration may be made of companies of "national significance" whose losses cannot be eliminated "in the foreseeable future because of a shortage of assets" and in which neither the owners nor the state may offer support, but whose possible sale as a whole entity is in the public interest in light of its continued operation thereafter.
The declaration allows companies for who insolvency is the only option to be wound up without a legal successor in an accelerated, transparent procedure.
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.