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Malév needs HUF 23 bln by end of August - papers

An extraordinary general meeting of shareholders of Hungarian national carrier Malév on Friday raised the airline's capital by HUF 4.5 billion but this is just part of the HUF 23 billion the airline will need until the end of August, Hungarian dailies Magyar Hírlap and Népszabadság reported on Saturday.

The Hungarian National Asset Management Company (MNV) confirmed when asked by Magyar Hírlap that Malév's net assets must be raised by HUF 23 billion to meet legal requirements. Malév has negative net assets of HUF 22.5 billion at present, MNV said.

Hungary's Companies Act stipulates that the airline has 90 days from the approval of the company's report (May 27, 2011) to raise net assets.

The HUF 4.5 billion raise approved by shareholders on Friday must be transferred by July 4.

Malév received state support totaling €300-380 million between 2007 and 2010, according to data from a procedure launched by the European Commission last December. The support was paid on eight separate occasions.