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Liquidations number reaches almost 70% of 2008 total

The number of liquidation procedures started against Hungarian companies in H1 reached 14,122, already almost 70% of the number in all of last year, fresh data from Creditreform show.

The number of liquidation procedures brought against companies by creditors or suppliers increased more than 36% to 7,517 in H1 from the same period a year earlier. The number of self-initiated liquidation procedures rose almost 60% to 6,590. Just 15 companies applied for bankruptcy protection, as the business environment in Hungary makes it easier for owners to take assets out of troubled companies and put them into new ones.

The combined registered capital of companies that went under liquidation in H1 came to more than HUF 63.3 billion, or more than 88% of the registered capital of companies that went under liquidation in all of 2008.

Hungary's tax office APEH started 16,171 procedures against companies who owed back taxes in Q2, up from 12,220 in Q1. The number is a good indicator of the number of liquidations to come, Creditreform said. (MTI-Econews)