Est Media announced late Tuesday that it failed to sell its 49% stake in festival organizer Sziget and thus extended two loans of a combined HUF 650 million.
The loans – HUF 300 million from Wallis Asset Management and HUF 350 million from UniCredit Bank Hungary – were both extended until August 6 but the deadline for repayment may be extended until August 31.
The August 6 deadline with the option for an extension until August 31 also applies to payment of the purchase price for Est Media's indirect 49% stake in Sziget by the two companies Szigerta Invest and Volt Invest under a contract signed by the parties.
Public records show Szigerta Invest is owned by Károly Gerendai, the founder of Sziget, Hungary's best known popular music festival. The construction was necessary because Est Media could not refinance its loans on the tight lending market, according to the announcement.