Hungary to raise capital of airline Malev again
Thursday, 25 August 2011 12:38
Hungary's government will raise the equity of loss-making airline Malev by 18.5 billion forints ($97.5 million), national news agency MTI reported on Tuesday, citing national asset management company MNV, Malev's main owner. MNV will count 10 billion forints worth of loans it gave to Malev toward the capital hike, and will transfer another 8.5 billion forints to complete the increase.
The move was necessary even after a recent 4.5 billion forint capital increase because the company still had a 22.5 billion forint negative equity, MNV has said, adding that the increase would have to happen by Aug. 25. Hungary's attempts at privatising loss-making Malev have failed and last year the government bought back all but a 5 percent stake from a group of investors, including Russia's Vneshekonombank. In Dec. 2010 European Union competition regulators opened an in-depth investigation into Malev saying it may have received illegal state aid.Source: Reuters