According to index.hu, Synergon Integrator Services owned by Synergon System exclusively has made a bankruptcy application to the Budapest Tribunal, the parent company published on the website of the Budapest Stock Exchange on Tuesday.

Synergon said in a statement that the company’s liquidity problems basically stem from the Futar project implementation. The additional costs of the solving of the encountering technical problems and the forced subcontractor switching, as well as the excessive penalties imposed a significant additional burden on the company, causing liquidity problem for which solution requires a major reorganization and a bankruptcy arrangement with the lenders to ensure the continued operation of the company.

Previously, the additional companies of the group also provided significant financial resources. It is also caused liquidity problem for the company that OKF canceled the contract related to the OKF Budapest Disaster Management Directorate deployment system, and the company was ordered to pay HUF 180 million this year’s lawsuit, index.hu said.

The cancellation was due to the faulty execution of the company’s Czech subcontractor. The company filed a lawsuit against the subcontractor to pay HUF 200 million, but until it will be completed legally, the claim is not enforceable and the company cannot pay for OKF.

Their statement wrote that the bankruptcy proceeding initiated by the subsidiary has no direct effect on the daily operation of the parent company. The company, depending on the bankruptcy proceeding, examines the value of the subsidiary as an investment, and if the depreciation of the investment happens, that cause losses to the parent company as well and can also reduce its own capital.

based on the article of index.hu
translated by BA

Photo: Daily News Hungary

Source: http://index.hu

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