Some thirty creditors of Ganz Acél, the main building contractor of Budapest’s recently completed Megyeri bridge, have file a bankruptcy petition against the company after it failed to pay nearly Ft 2 billion it owes to over 200 creditors, writes index.hu.
Ganz Acél, which is sitting on debt pile totaling Ft 3.6 billion, last week invited creditors to a meeting where it warmed a bankruptcy would be a bad option for unpaid creditors, as they would likely recoup only about 15%-20% of their claims, as opposed to about 30% if they managed to thrash out a deal.
Ganz Acél also went to great lengths to explain how its total assets fell about Ft 1.5 billion short of its total liabilities, and how these assets would be further whittled down by an expensive bankruptcy proceeding.