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Still no agreement between Ikarus Egyedi and creditors

Bus manufacturer Ikarus Egyedi Kft. failed to come to an agreement with its creditors in a meeting on Tuesday, according to a press release sent to the Budapest Business Journal.

(Photo by Art Konovalov/Shutterstock)

The failure casts the companyʼs future in jeopardy, as main creditor MKB Bank refused Ikarusʼs proposal to settle all claims within a period of seven years. Negotiations broke down despite owner Csaba Mészáros proposing to grant creditors part of his 99% ownership share proportional to their claims.

The situation also means that a return to production is delayed, with a high chance of Modulo buses already in service being left without maintenance. Despite this, the company claims that demand for buses made in Hungary is still high, with transport company Volán Buszpark Kft. submitting two requests for tender, looking for 63 new elevated comfort and 25 new regular floor buses.

Ikarus Egyedi filed for bankruptcy protection on July 9, with the government classifying the company "strategically important" on July 10. Nevertheless, both Budapest transport company BKV and long-distance operator Volánbusz cancelled orders shortly after.

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

Ikarus Egyedi is not a successor company to the iconic Ikarus bus maker, which closed down in 2003, and there is an ongoing legal dispute over ownership of the Ikarus brand with Műszertechnika Holding, a company of one-time Ikarus chairman Gábor Széles.