Bayer Construct Ltd. has filed a request with the court to initiate insolvency proceedings, Attila Balázs, the owner of the Bayer Group, told employees yesterday. According to the company chief, developments over recent months have left the business facing serious financial exposure. He cited regulatory changes affecting projects under way, the Government’s decision concerning Zugló City Centre and adverse market conditions.
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The most pressing problem is likely to be the Zugló City Centre development being built behind Bosnyák Square. The state bought the office complex in November 2023, but for the sale to be completed, entries relating to pre-emption rights had to be removed from certain title deeds. That did not happen, and the new Magyar Government announced on 3 August that it was withdrawing from the purchase of the office complex.
The Zugló office complex had already attracted considerable controversy. Critics have argued that it is unnecessary, cannot be properly utilised and makes little sense from a public-transport perspective. They have also warned that the geothermal energy it consumes could deplete the wells supplying Budapest’s thermal baths.
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Bayer Construct disputed the Government’s decision and had previously threatened legal action, Telex reports. Meanwhile, the Zugló municipal council could also sue the company if the council approves a proposal to that effect on 3 September.
Bankruptcy on the horizon
It is important to note that insolvency proceedings do not automatically mean that a company is about to collapse. On the contrary, the purpose of the legal procedure is to give a business facing payment difficulties time to reach an agreement with its creditors and stabilise its operations. Bayer Construct says it will continue operating during the proceedings, complete its projects under way and settle claims made by its partners.
Bayer Construct did not become one of the construction industry’s leading players overnight. The group has more than two decades of history and operates not only in Hungary but also in Romania.
Its Hungarian portfolio includes the Hungaroring, the Zenit shopping centre, Waberer’s Ecser Logistics Centre, Kincsem Residential Park and the Láng Quarter. Alongside residential and office buildings, the group is involved in civil engineering and water-management projects, structural construction, steel fabrication, prefabrication and geothermal developments. The Zugló City Centre was the group’s largest project to date.
The company is also involved in the development of Epres Liget in Debrecen, while its Budapest portfolio includes the Szilas Liget residential project. In Romania, the Bayer Group is primarily engaged in construction work and the sale of products, particularly in Transylvania. Its Romanian subsidiary, Bayer Strada, builds residential and non-residential properties.
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In 2025, Bayer Construct recorded net sales of approximately HUF 217 billion and after-tax profit of HUF 13.2 billion, while employing 1,340 people. By revenue, the company ranks among the largest players in Hungary’s construction industry, placing around the top five in publicly available rankings for 2025.
In Hungarian public life, Bayer Construct is regularly described as a company close to the NER, chiefly because of the business links between Attila Balázs and István Tiborcz, Viktor Orbán’s son-in-law, as well as the group’s substantial volume of state contracts. According to an earlier summary by Telex, Attila Balázs is a business associate of István Tiborcz, while Bayer has signed state agreements and received public contracts worth several hundred billion forints in recent years. These deals effectively propelled it into the top five of Hungary’s construction market.
Attila Balázs was also the man who urged his employees on 12 April to vote for Fidesz. “Anyone who disagrees with this, please do not take part in our team,” he added. He later apologised for the letter.
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