Budapest, June 3 (MTI) – Porcelain maker Zsolnay Porcelanmanufaktura is suing for the cancellation of its loan from the state-owned Hungarian Development Bank (MFB).
MFB cancelled the 413 million forint loan May 18 and will initiate a liquidation procedure against the company if it fails to comply with the repayment schedule in 15 days, it was revealed at a shareholders’ meeting on Monday.
Press reports suggest the municipal council, which holds a minority stake in Zsolnay, is gearing up to take over the operation of the company if it goes under liquidation.
Zsolnay’s majority owner, Bachar Najari, a Syrian-born businessman with ties to Hungary and Switzerland, has complained of a “smear campaign” by the local council and voiced concern over a “hostile takeover” of the company.
Zsolnay had a 54 million forint loss on revenue of 714 million last year, public records show.