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First Hungarian producer organization falls apart

Mórakert, Hungary's first producer organization, has entered liquidation after defaulting on debts of more than HUF 4 billion, daily Napi Gazdaság reported.

The organization's assets will go on the block later this month and its liquid holdings will be sold off in blocks, liquidator CMB Holding Kft said. The value of the assets is currently being assessed, and estimates put the value of machinery, stocks, real estate, and business interests owned by Mórakert at several billion forints.

CMB Holding has registered 84 creditors with claims to date, but the company also has unpaid taxes. Established in 1995, Mórakert had net revenue of HUF 5.2 billion and operating profit of HUF 25 million, which fell to HUF 4.7 billion and a loss of HUF 1.6 billion a year later. Sales in 2009 dropped to HUF 2 billion, while liabilities swelled to HUF 4.4 billion.