The Budapest Metropolitan Court has appointed a trustee in bankruptcy for financially strung national airline Malév. The carrier has recently been classified by a government decree as a company of strategic importance so that the cabinet could shield it from going bust. Under law, the liquidator may only be the state-owned Hitelintézeti Felszámoló Nonprofit Kft. (Credit Institution Liquidator Nonprofit Plc.). This means that without the liquidator's approval, Malév cannot make any payment in the future. It will decide whether the given payment is necessary to maintain the operation of the carrier under normal conditions.

Malév's management is to prepare a liquidity plan and present it to the liquidator by the weekend.

Under an extraordinary moratorium announced by the Budapest court, the carrier is enjoying a shelter similar to bankruptcy protection, which in practice means that debt collection proceedings against Malév are temporarily suspended. The contracts signed earlier with the carrier may not be terminated and its official permissions will get automatically extended.

Source: Portfolio.hu