June 3rd, 2010

Demján reportedly to participate in launching “new Malév”

Hungarian businessman Sándor Demján would take part in the rekindling of state-owned Malév, business weekly Figyelő wrote.

Imre Mécs, CEO of the Hungarian billionaire’s venture capital company Magyar Tőketársaság, confirmed the news that Demján is in talks with foreign investors with plans to take over the debt-laden airline after it is liquidated and its debts are settled.

Malév’s maintenance and ground-service subsidiaries would be transferred to the state asset management company MNV, which also owns the brand name.

The airline being liquidated and having its debts settled would actually be a consolidation because the government has guaranteed the debts, the business weekly writes.

Demján and his team would take on a company without debt, from scratch, and operate the airline on smaller networks and without any obligation to join partnerships.

National Development Minister Tamás Fellegi said in a television interview that any decision on Malév must be preceded by an in-depth inquiry, as the airline is in a very complex situation.

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