02 October 2009 11:51 [Source: ICIS news]
PRAGUE (ICIS news)--Hungary’s government has opted not to extend a state bail-out loan to financially embattled isocyanates and polyvinyl chloride (PVC) producer BorsodChem, the Hungarian Ministry for National Development and the Economy said on Friday.
The announcement came after BorsodChem’s majority owner, UK-based private equity firm Permira Advisers, released on 1 October a proposed rescue plan for the company that included a desired loan of €100m ($144.9m) from Hungarian state-owned development bank MFB.
Ruling out direct or indirect state loans for BorsodChem, the ministry said it was “closely monitoring” negotiations between ?xml:namespace>
The ministry appealed to the parties “to think long term” in planning the company’s future.
“In the current situation, the government does not wish to interfere actively in the discussions between the market players,” said the ministry.
If state intervention were necessary to protect jobs at BorsodChem, the government would be prepared to negotiate once the company’s ownership structure was clear, the ministry said.
($1 = €0.69)
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