Parad Kristaly bidder fails to pay, but receiver still confident of sale

The winner of the tender for Parad Kristaly, a 300-year-old Hungarian maker of fine crystal, has not paid the full purchase price for the company, but the official receiver in charge of the liquidatio…

The winner of the tender for Parad Kristaly, a 300-year-old Hungarian maker of fine crystal, has not paid the full purchase price for the company, but the official receiver in charge of the liquidation says the sale is still expected to close by year-end. The bid was the only one received for Parad Kristaly, official receiver Matra Holding said in September 2006. It was the fourth time the company had been offered for sale. The guide price for the company was HUF 144 million, well below the HUF 318.5 million guide price when the company was first offered for sale. Parad Kristaly, which exports 70% of its products to the US and Japan, has been hurt by the weak dollar. It ended 2004 with losses of HUF 200 million on sales of HUF 1 billion. The company went into liquidation at the start of 2005. A tender was called in July 2005, but none of the bidders met the asking price of HUF 318.5 million and the sale was abandoned. At the second tender in October 2005, no asking price was announced. Kristaly Manufaktura Parad 1708 Export-Import, a company set up by private Hungarian investors to buy Parad, submitted the best offer in the tender, but failed to produce the purchase price, even after making a 10% deposit. At the third tender, the only bidder failed to meet certain conditions and the sale was again abandoned. Production at Parad Kristaly“s factory, which employed 380 people, was shut down in August 2005. The company“s debts total HUF 300 million.