Electronic goods retailer Electro World Magyarország will apply for bankruptcy protection within a few weeks, business daily Világgazdaság said on Wednesday, quoting company chairman of the board Csaba Polgár.
Polgár told the paper that bankruptcy protection is unavoidable in the current situation as EWM is unable to repay its debts after payment of its normal operating costs.
Bankruptcy protection provides the company with the opportunity to draw up a new recovery plan with the involvement of creditors and banks during the bankruptcy protection period of a minimum 90 days (which, if agreement is reached with creditors, can be extended for up to one year).
Polgár said EWM has a business partner with which the company could offer substantial real-estate collateral for the financing bank.
Electro World closed its store in Budakalász, near Budapest, on Monday. (MTI-Econews)