Hungarian state intervention in Bayer Construct insolvency

The Hungarian government has designated the insolvency and bankruptcy proceedings of Bayer Construct Zrt. and ZVK Development Kft. as being of strategic importance. This action follows the companies’ requests for bankruptcy protection regarding the Bosnyák tér office development project, which involves approximately 300 billion forint.

Following a government decree, the court appointed the state-owned Nemzeti Reorganizációs Nonprofit Kft. as the official asset supervisor for both entities. The supervisor holds extensive powers to inspect books, review contracts, and monitor financial accounts. Furthermore, the companies are prohibited from entering into new financial obligations without the supervisor’s approval.

Prime Minister Péter Magyar stated that the intervention is intended to protect the interests of the state, creditors, workers, and subcontractors. He emphasized that the measure aims to prevent the misappropriation of public funds and to stop owners or associated individuals from transferring assets out of the companies. The Prime Minister specifically noted that the misappropriation of public funds must end, referencing the business circle of István Tiborcz.

Additionally, the Zugló municipal council has voted to initiate a lawsuit against Bayer Construct, alleging breaches of existing agreements related to the Bosnyák tér project.