Budapest, May 30 (MTI) – The state-owned Hungarian Development Bank (MFB) will initiate a liquidation procedure against renowned porcelain maker Zsolnay if it fails to comply with the repayment schedule on a 413 million forint (EUR 1.3m) loan that matured last August, daily Népszabadság said on Monday.
The local council of Pécs, where Zsolnay is based, has already set up a company to take over the operation of the porcelain maker if it undergoes liquidation, the paper said.
Zsolnay’s majority owner, Bachar Najari, a Syrian-born businessman with ties to Hungary and Switzerland who acquired his stake from the Pécs local council in 2013, earlier aired concerns over a “hostile takeover” of the company.
Népszabadság said Najari had transferred the foreign rights to the Zsolnay brand to a company owned by his wife. Zsolnay’s liabilities have grown to 900 million forints and its headcount has been cut from 220 to 150, it added.
Zsolnay is one of Hungary’s oldest and best known porcelain makers.