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Malév chairman requests liquidity plan to be made. Hungary moves to protect Malév

31-Jan-2012 10:50 AM

Malév stated (30-Jan-2012) that despite seeing "continually improving" commercial results, "the financing of activities had become unviable and was unresolved from the end of January". Board of directors chairman János Berényi requested Malév management formulate a liquidity plan for "the immediate future". It was also announced that talks with International Lease Finance Corp (ILFC) were successful with the company continuing to lease aircraft to the airline to ensure continued operations. Malév’s financial problems were exacerbated by the European Commission recently ordering it to repay illegal state aid received from 2007 to 2010. [more - original PR]

Meanwhile, Hungary’s Government has reportedly issued a decree protecting Malév from bankruptcy through preventing creditors from launching bankruptcy proceedings against the carrier. According to Reuters reports, the decree also allows the Government to run liquidation procedures if started.