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Hungary moves to prevent Malev bankruptcy

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Hungary moves to prevent Malev bankruptcy

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The Hungarian government wants to stop national airline Malev from going bankrupt.

Companies deemed by law to be of “strategic importance” can be protected by the state from their creditors.

Malev was nationalised in 2010 but the loss-making carrier has run out of cash.

The announcement follows a European Commission ruling early this month that forced the carrier to repay state aid worth hundreds of millions of euros received from 2007-10, the equivalent of its entire revenue in 2010.

Malev’s management must draw up a liquidity management plan by the end of this week, the airline said, renewing a plea for government help to resolve the situation.