Pápai hús liquidation

The government plans to offer 80-100% state guarantee for the loans necessary to save the meat producer Pápai Hús Zrt in liquidation since December 2006, reported Világgazdaság.


This can happen if the Hungarian Development Bank (MFB) finds the possible buyer’s demand financeable.
MFB would lend Ft4 billion for a 10-15 year maturity with 20% buyer’s deposit; this way the company and the supplies cost Ft5 billion in total.
The most likely buyer of Pápai Hús Zrt is Pápai Hús 1913 Kft (PH) incorporating local suppliers and interested parties. PH applied for government guarantee on the MFB loan.
The deadline of the selling tender was Nov 15 and only the Pápai Hús 1913 applied. It is possible to contract with PH if the company receives the government guarantee within a short term, said Jenő Varga, chairman – CEO of Vectigalis Zrt, the company in charge of the liquidation procedure; if that does not happen Vectigalis will start the preparation for closing down the meat producer plant. PH offers approximately Ft4 billion contrary to the Ft5 billion asking price.

The BpSun Staff

27.11.2008