The Hungarian airline Malev went bankrupt

Due to liquidity problems, the airline ceased operations.

Rumors of the last few days that the Hungarian airline was in immediate danger of bankruptcy were compounded by the fact that its suppliers had demanded the repayment of debts "overnight", a fact that was "impossible" for the company.

Malev has been facing financial difficulties for many years. Earlier this year, the European Commission called on Hungary to ask the company to return the millions of euros it had received in state funding.

Following this decision, Budapest suspended its financial assistance to Malev.

"Because of the EU decision, the Hungarian government can no longer finance the company and as we do not have a partner available to help, we are suspending Malev's operations, which have become impossible due to lack of liquidity," explained company CEO Laszlo Bereni.

Malev has 2.600 employees and as of Thursday operated 40% of its flights at Budapest International Airport.

In 2010 it had shown losses of 24,6 billion forints (85 million euros), but had budgeted for an improvement in its financial situation in 2011.

The company's aircraft are in Hungarian territory except for one, which is stuck at Tel Aviv airport with its crew. The reason is the refusal of the Israeli workers in the ground service of the aircraft to prepare the aircraft of the Hungarian company.

A Budapest court on Thursday ordered the suspension of payments on Malev's liabilities and placed it under compulsory management until a partner was found to take over the company.

Hungarian Prime Minister Viktor Orban said on the radio that "Malev could take off again if she gets rid of the burdens of the past."

Source: FILELEFTHEROS