Opening of the renovated Rác bath complex, including a new five-star hotel adjacent to the historical building, is likely to suffer further delays as state development bank MFB has decided to terminate funding of the project, Napi Gazdaság has learnt.
The bath complex was to open its doors this May. MFB has lent €23 million to the project so far and is in financial disputes with prospective hotel operator Rác Nosztalgia, which has refused to pay.
MFB has tolerated the delay in payment by Rác Nosztalgia since June 2011, Napi Gazdaság was told by the state development bank. As a main financier of the project, MFB’s mortgage right was not registered by lenders. At a meeting on the future of the Rác bath complex in May, Rác Nosztalgia and other borrowers made a decision to reduce MFB’s claims by half or a third, which is “financial nonsense”, MFB said.