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Creditors want Vegyépszer Hungária to offer better deal - newspaper

Hungarian construction company Vegyépszer Hungária and the 240 of the company's creditors reached no agreement on Vegyépszer first offer made as part of a bankruptcy protection procedure on Friday, business daily Napi Gazdaság wrote.

Creditors are expecting a more favorable offer from the company for the next meeting to be held on July 21.

Vegyépszer would have refunded 40% below HUF 500,000 contribution, 20% between HUF 500,000 and HUF 1 million, 11% between HUF 1 million and HUF 5 million, 7.5% between HUF 5 million and HUF 10 million, 5% between HUF 10 million and HUF 50 million, 2% between HUF 50 million and HUF 100 million and 0.5% over HUF 100 million. The offer has to take note that the company's full cash stock is bound by mortgage and bail, so every refund has to come from its assets.

Vegyépszer Hungária filed for bankruptcy protection in April. The company said at the time its financial difficulties stemmed from the contraction of the construction sector following the 2008 crisis. It was also forced to suspend a HUF 80 billion project to build infrastructure and public facilities in Libya because of the civil war that erupted in that country in February. Press reports added that Vegyépszer Hungária assumed HUF 16 billion in short-term liabilities from construction company Nemzetközi Vegyépszer when it spun off from the latter firm in February.