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Transelektro to receive Ft 3 bln from creditors

A consortium of lender banks overseeing the restructuring of heavy industry holding Transelektro Group decided late on Wednesday to lend the troubled company a further Ft 3 billion, Gyula Tímár, the head of Vegyépszer Rt, which recently purchased a 48% stake in Transelektro Management Kft, said Wednesday evening.

“With this credit contract the restructuring of Transelektro may begin,” Tímár said. However, Tamás Erdei, who heads the consortium of banks, would neither confirm nor deny news that the contract had been signed. Erdei, who is also the president-CEO of MKB Bank Rt, one of Transelektro's biggest lenders, said the “last adjustments” must still be made to the agreement. Tímár also said that Peter Székely, formerly Transelektro's majority owner, but now holding just 33%, presented the consortium of banks with a document showing he will inject a further Ft 500 million into Transelektro.

On January 31, Economy and Transport Minister János Kóka announced that Transelektro was in need of Ft 3.5 billion of fresh capital, of which Ft 500 million would be paid by the company's owners at the time and Ft 3 billion would be paid by Transelektro's creditors. The bank loans will be backed by a 75% state guarantee, Kóka said.