UPDATE 1-Hungary's Malev delays EGM to resolve financing

Fri Dec 19, 2008 4:06pm GMT
 
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(Adds more comments from Malev in sixth, ninth and final paragraph)

BUDAPEST, Dec 19 (Reuters) - Hungarian airline Malev [MALV.UL] suspended an extraordinary shareholders' meeting on Friday which was meant to resolve the capital problems of the company, Malev said in a statement.

It said the meeting would be reconvened within 30 days but declined comment on local press reports which said Russia's Aeroflot (AFLT.MM) might acquire a stake in the company.

Business daily Napi Gazdasag said on Friday Malev had significant debts and that the shareholder meeting may discuss a potential change in ownership.

Malev, which Hungary sold last year to AirBridge Zrt, a firm part-owned by Russian businessman Boris Abramovich, said the meeting, to be held within 30 days, would provide a solution for the situation of the struggling company.

"Malev, similarly to other players in the aviation industry, has faced numerous difficulties this year, such as the huge rise in the price of jet fuel in the first half of the year, the intensifying global recession in the second half, and the strike of Budapest Airport workers from Dec. 10," it said.

"Despite all these (factors) the airline is operating and the shareholder meeting ... which will continue in 30 days, will resolve the capital situation of Malev," the firm added.

Malev said the strike at the airport operator had forced it to cancel around 96 flights departing from Budapest, causing losses of several hundreds of million forints.

In September, Malev said it expected to post an operating loss this year after jet fuel costs surged.  Continued...

 

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