Austria's Amro backs out of buying IPC-SVG
Monday, February 20, 2006, 17:18
Austria's Amro has decided against purchasing Hungary's IPC-SVG, as announced earlier, the bailiff in charge of IPC-SVG's liquidation said on Monday. Amro withdrew from the deal before signing the contract because of financial and business reasons, bailiff György Molnár said. Molnár said on February 9 that Amro had agreed to buy IPC-SVG, a maker of welded metal parts, for about 80% of the Ft 450 million asking price. Molnár said the factory is operating and negotiations on its sale are ongoing. An agreement with new owners is expected to be reached within weeks, he added. The factory had losses of almost Ft 500 million on revenue of Ft 1.2 billion in 2004, and it had liabilities of Ft 700 million. But its stock of orders, mostly from Austrian and German companies, are enough to tie up capacity until 2008, Molnár said. IPC-SVG's biggest creditor is CIB Bank, to which it mortgaged its property and equipment, but it owes suppliers and the tax office as well.