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Transelektro fails to reach agreement with creditors

The owners of troubled holding company Transelektro failed to reach an agreement with creditors by the May 31 deadline, which could force Ganz Transelektro Villamossági Rt (GTV), the company exercising ownership rights over the holding company's units, into liquidation immediately, GTV CEO Gyula Tímár announced on Thursday.

Tímár, however, suggested that GTV's three units, Ganz Transelektro Közlekedési, Transelektro Energetikai and Transelektro Ganz-Rock, could still be rescued. He added that the owners of Transelektro Management Kft, which holds a 49% stake in GTV, have set up a company with registered capital of Ft 1 billion under the name Transelektro Fővállalkozó Kft to assist the units complete their orders.
Construction company Vegyépszer Rt, which Tímár also heads, owns 48% of Transelektro Management. If GTV's creditors call back the company's Ft 10 billion in loans and Ft 6 billion in guarantees, it will be forced into liquidation, Tímár said.