Malev To Get HUF3 Bln Capital Increase

Hungarian national airline Malev's owners will inject HUF3 billion forints (USD$12.74 million) into the firm to solve its financing problems, it said following an extraordinary shareholder meeting.

In a statement quoted by the national news agency MTI Malev also said that Russia's Vnesheconombank, Malev's biggest lender, took over the shares of Russian businessmen Boris Abramovich in AirBridge, the owner of the airline.

Hungary sold Malev to AirBridge, which was then part-owned by Abramovich, in 2007.

The shares of Hungarian businessman Kalman Kiss in AirBridge were taken over by businesswoman Magdolna Kolto, maintaining 51 percent Hungarian ownership in Malev, the airline said.

Malev is expected to need further capital increase due to its losses and to meet legal capital requirements AirBridge will grant more financing at the annual shareholder meeting, once the final financial data of Malev are available, the statement said.