Are you sure?

Vértesi power plant files for bankruptcy protection

Power plant Vértesi Eromu, a unit of the state-owned Hungarian Electricity Works (MVM), has filed for bankruptcy protection, the company told MTI on Tuesday.

A general meeting of the shareholders made the decision in the interest of remunerating its workers, supplying the region with district heating and repaying loans with state guarantees, the company said. Vértesi will prepare a program designed to make it solvent as well as make proposals to its creditors and workers during the 90 days it is under bankruptcy protection.

Had it not filed for bankruptcy protection, Vértesi would have had to pay more than €6 million to energy traders by the end of August, the company said.

A proposal to raise capital of Vértesi by HUF 6 billion-8 billion was made at the general meeting, but MVM did not vote on it, said Gábor Rajnai, mayor of Oroszlány, where the plant is based.

Vértesi gets about HUF 1 billion a month from MVM and almost HUF 8 billion a year in subsidies to maintain the last deep coal mine in Hungary. (MTI-ECONEWS)