Hungary's Zsolnay In Critical Condition Again
- 9 Mar 2012 8:00 AM
"The famous Zsolnay porcelain manufacturer is fighting for survival, as its owners have again postponed a planned Ft 500 million capital increase, an executive told Napi Gazdaság on condition of anonymity. Not only traditional orders but also orders for porcelain to be used in construction projects have declined, the source said.
Zsolnay, 51% owned by the city of Pécs, is due to repay a Ft 140 million loan in April.
Construction company Közgép purchased the remaining 49% of Zsolnay last summer from Manufaktúra Befektető, a company related to the SCD property group.
However, Közgép failed to inject Ft 500 million as promised by the end of 2011.
The company reached an agreement in the middle of February on postponing the deadline to the end of 2012, but Zsolnay might not survive until then, Napi Gazdaság adds."
Source: Hungary Around the Clock
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