At the moment, five of its factories are almost completely closed down.Continue reading
Tungsram has sent a statement to the news portal Index to inform the public that the company has filed for bankruptcy protection. The company on Wednesday informed employees, trade unions, works councils and banks of this compulsory measure, as required by law. As we reported earlier, 1,600 employees of the company were laid off at the end of April, 400 of them in Budapest’s Újpest district alone.
This article was originally published on our sister-site, Ungarn Heute.
“Tungsram Operations’ lending partner, Eximbank, exercised its legal right to file for bankruptcy on Wednesday,” the Index article says. “This means that all funds already in the bank accounts and still to be received would be managed by Eximbank. Tungsram respects that the bank is asserting its legitimate interests in this way.”
Tungsram said it continues to prioritize its obligations to its employees, customers, suppliers and the authorities. On Wednesday, the company took a legal and financial protective measure that could resolve these conflicts; it filed for bankruptcy protection.
The company stressed it did so because it is able to continue paying the salaries and taxes of its remaining employees under bankruptcy protection. They have also informed their employees, unions, works councils and banks about the bankruptcy protection. Jörg Bauer, the company’s CEO, said that the company’s management would do everything possible to “continue the company under bankruptcy protection on the basis of a transition to a profitable business structure.”
Jörg Bauer emphasized that
the insolvency protection does not mean the dissolution of Tungsram, but is an attempt to ensure the successful survival of the company.”
The fact that the company was in deep trouble was already known a month earlier. The company was in an insurmountable economic situation. At that time, it was also decided to partially shut down the plant, and layoffs were not discussed until later.
In the featured photo: Tungsram CEO Joerg Bauer. Photo by Zoltán Máthé/MTI
