The measures in question were the state takeover of a €76 million loan in December 2007, the Ft 4.3 billion cash loan issued when the sale of Malév Ground Handling failed, the postponement of Ft 13.8 billion in social contribution payments, the Ft 25.4 billion capital increase in February 2010, a further Ft 5.7 billion capital increase in September 2010, the Ft 14.9 billion in state loans provided between May and September 2010 and the exchange of part of these loans for Malév shares in September 2010.

The Development Ministry announced that it understands and respects the ruling. The ministry has developed different responses and will apply the most suitable one after studying details of the ruling.

The cabinet is expected to address the question at its meeting on January 16.

Maintenance of a state airline remains a top priority of national interest, the ministry underlined, adding that the continuous operation of Malév is essential to this goal.

The ruling does not create an immediate payment duty for Malév, nor does it specify the amount to repaid, leaving that calculation to the state.

The government has four months to find a solution, as EU law allows 60 days for the state to define the exact sum to be paid by Malév and its sources.

The procedure was launched based on objections filed by Wizz Air.

An amendment to the bankruptcy law made in last summer allows a non-standard bankruptcy procedure to be applied if Malév is classified as a company of strategic state interest.

In such a process state-owned Hitelintézeti Felszámoló can sell assets without public announcements. No legal challenges would be possible concerning the method and valuation of the sales, Napi Gazdaság points out."

Source: Hungary Around the Clock

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