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Employees to initiate liquidation procedures against idle TE Ganz-Rock

Employees of Transelektro (TE) Ganz-Rock Zrt will initiate liquidation procedures against the boiler and power-plant equipment maker, which has not paid them for nearly six months and has been idle since the company's electricity was shut off on September 3 due to non-payment of power bills, secretary Gábor Kengyel of the union representing the employees told MTI.

Kengyel said that 144 TE Ganz-Rock employees had signed the petition to be submitted to the Budapest Municipal Court on Wednesday requesting that the court initiate liquidation procedures against the company.

Engineering company Resonator owns 55% of TE Ganz-Rock, which is located in Kiskunfélegyháza, while construction company Vegyépszer owns the remaining 45pc. Resonator and Vegyépszer rescued TE Ganz-Rock from liquidation in the summer of 2006, injecting billions of forints into the former unit of beleaguered engineering company Transelektro.

Hungary's previous Hungarian socialist party-controlled government decided in April to provide TE Ganz-Rock with a HUF 2 billion guarantee on working-capital loans from commercial banks subject to approval from the European Commission. (MTI – Econews)