State to buy claims of Váhostav creditors by year-end

The state should buy up the claims of non-secured creditors towards construction giant Váhostav by the end of this year, the Finance Ministry announced on Wednesday. The creditors have been promised by the state that their claims towards the company, which is undergoing restructuring, will be bought from them at half their value by the Slovak Guarantee and Development Bank (SZRB). This was made possible by a recent bill, with funds from a bank levy to be used to this purpose. The procedure should be concluded by the end of the year informed the Finance ministry. Váhostav's restructuring plan was Okayed by a Bratislava court on Friday. Based on the plan, Váhostav will pay non-secured creditors 18.75 percent of the value of their claims, which comes to be more than €19million. Váhostav will have paid 50 percent of the original claims within five years, while the other 50 percent will be dealt with in the form of creditors' right of ownership to Váhostav shares and equity.