Owners pump €9.9m into struggling airline
Struggling Hungarian airline Malev will receive a HUF 3bn (€9.9m) injection as part of an ownership restructure.
Russian state-owned Vneshekonom Bank last month agreed to take control of Malev which owed it €30m from a loan.
But the AirBridge Zrt consortium, Malev's owners since its privatisation in 2007, today (March 19) agreed to continue financing the airline.
Malev said AirBridge would raise "equity to the point where it conforms to the amount stipulated in legal regulations."
The Hungarian government sold its 99.95% stake in the debt-ridden carrier for HUF 200m (€793,650).
The buyers were AirBridge, a Hungarian consortium of Russian investor Boris Abramovich of the defunct AirUnion Alliance and two Hungarians, backed by Russia's now bankrupt KrasAir.
Malev's new owners said that Airbridge, a consortium, had failed to meet certain conditions of the sale.
Following a shareholder meeting today (March 19), the 99.95% of shares held by the AirBridge will be redistributed.
51% of Malev's shares will remain in Hungarian hands, while those owned by Mr Abramovich will go to Vnyesekonom Bank.
Malev said the money would improve its "capitalization and solvency."
www.malev.com