ABSTRACT
Salgglas Svegipari Ltd., Salgglas, a Hungarian producer of flat glass, was obliged to declare bankruptcy in April 1992. Salgglas’s bankruptcy led to its privatization, which put it in the hands of its major creditors, without, however, solving the key strategic problems facing the firm. Glaverbel, a Belgian glass company, became interested in purchasing Salgglas, but the Hungarian State Property Agency prevented the company from agreeing to the Belgian firm’s offer. Glasunion Ltd., a holding company, was explicitly formed by the banks to carry out the takeover of Salgglas after privatization, thus at a low asset price. Glasunion only purchased the assets of Salgglas, then under liquidation. The inventory remained with the liquidator. General Glass is a manufacturer of the same size and with a similar product line as Salgglas, and it was interested in acquiring a production facility in Europe. The decision-making bodies of the company are the general assembly and the board of supervisors.
