Pápai Hús in local hands

The government assumed state guarantee on 80% of the loans the buyer would take out from the Hungarian Development Bank (MFB).

The buyer was a project company that was brought to life a
consortium comprising the Pápa-based Agroprodukt Zrt., the
also local water and sewage company Víz- és Csatornamű
Zrt., the Pápa Municipality, as well as employees and
management of the company and hog breeders. The buyer will pay only
16% of the purchase price from its own pocket.
Jenő Varga,
Chairman-CEO of liquidator Vectigalis Zrt., said the HUF 4.5 billion
comprises not only the purchase price, but also the value of the
current assets required for further operation and the loans necessary
for development. The buyer took possession of the plant's
inventories, hogs and hog farms, as well.
Varga stressed the meat
processor has been profitable for the last six months and he believes
this might not change if the owners let go some of the employees.
There's currently a 1,380-strong headcount at the facility.