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E-Star files for bankruptcy protection

Hungarian alternative energy services company E-Star filed for bankruptcy protection.

"The company had not been able to comply with its due payment obligations and the right of its creditors for initiating liquidation proceedings against the company has opened," E-Star said. E-Star recently terminated several contracts with local councils in Hungary and Romania for non-payment. Afterward, short of financing to pay back bondholders, it announced it would repurchase only some of the securities it had issued, and at a steep discount. E-Star CEO Csaba Soós said late Friday that Raiffeisen Bank had terminated all loan agreements with the company. "The company aims to conclude an agreement with its creditors under the bankruptcy procedure, ensuring the company’s future operation," E-Star said.