After the settlement offer was rejected, Tungsram will be liquidated. The company intends to continue operating but will lay off 750 employees.
After Eximbank rejected Tungsram’s second debt settlement offer, the court ex officio ordered the liquidation. The six-month statutory deadline for the bankruptcy protection ordered in the spring runs out in mid-November.
The company has done everything in its power to reach an agreement with its creditors and repay its debts to its suppliers, most of which are Hungarian SMEs. The company offered to reimburse 100% of its debt up to HUF 10 million (EUR 24.6 thousand) per creditor, but Eximbank’s refusal prevented the offer.
As a result of the organizational restructuring recently initiated, smaller subsidiaries have been or will be established which will enable Tungsram’s ‘healthy businesses’ to survive. Negotiations with potential investors such as the Swiss company Business Creation have now become much more difficult given the lack of a bankruptcy settlement.