Parád Kristály sold for undisclosed price
Friday, October 14, 2005, 11:24
Parád Kristály, a 300-year-old Hungarian maker of fine crystal, has been bought by Kristály Manufaktúra Parád, which was set up by private Hungarian investors to purchase the failing company, bailiff Benedek Pintér announced on Thursday. Ownership of Parád Kristály will be transferred to the buyer upon payment of 10% of the purchase price, with the rest to be paid within 30 days, Pintér said. Pintér would not disclose the price, but said it was enough to pay the company's employees as well as some of its debts. Tamás Augusztini, who indirectly owns Kristály Manufaktura Parád, said that he hoped to restart production at the factory by the end of the year with at least 100 workers, but the number of employees could rise to 250 within three years. Augusztini said he hopes to make a billion-forint investment in the company's reconstruction. Parád Kristály, which exports 70% of its products to the US and Japan, has been hurt by the weak dollar. It ended the year 2004 with losses of Ft 120 mln on sales of Ft 1.1 bln. The company went under liquidation at the start of 2005. A tender was called afterward, but none of the bidders met the asking price of Ft 318.5 mln and the sale was scrapped. Another tender was called in early October, this time with no asking price. Production at Parád Kristály's factory, which employed 380 people, was shut down in August. The company's debts total Ft 450 mln.