Business 16 May 2025, 3:01pm

Hungary Nitrogénművek avoids default, reaches agreement with bondholders

Portfolio

Hungarian fertiliser maker Nitrogénművek has reached an agreement with the majority of its bondholders for a 60-day extension on its EUR 200 million matured bond package after the company failed to repay the debt by the deadline, the company announced on Friday.

In a statement, Nitrogénművek, which is owned by László Bige, announced that it had

successfully negotiated with investors holding 75% of the bonds to extend the €200 million bond package that matured on Wednesday.

The detailed terms of the modified proposal will be disclosed at a later date. For now, the company has only revealed that they have agreed to a 60-day extension.

The company's board of directors is currently examining all available options and remains optimistic about reaching an agreement that is acceptable to all parties involved regarding the bond maturity. Further updates on developments will be provided as soon as possible.

The situation arose when Nitrogénművek failed to repay the €200 million (approximately HUF 80 billion) bond package, which had an annual interest rate of 7%, by Wednesday's deadline.

Zoltán Bige, the company's strategic director and son of owner László Bige, had previously stated that the company's financial difficulties were partly caused by discriminatory and unmanageable tax burdens, which the company is challenging in court.