Budapest Stock Exchange Halts Trading of Bayer Construct Bonds Amid Bankruptcy Uncertainty

The Budapesti Értéktőzsde decided to suspend trading of Bayer Construct’s bonds indefinitely after the company, which entered bankruptcy in August, did not inform the exchange whether it had met its repayment obligations. The firm was expected to make a capital repayment and interest payment in late October, but remained silent despite multiple requests from the exchange. The suspension took effect on October 27.

Bayer Construct’s financial troubles stem from a failed state sale of its Bosnyák tér office complex and have implications for the Magyar Nemzeti Bank, which bought a substantial share of the bonds through the NKP programme. Credit rating agency Scope Ratings has already placed the company in a default category. The bankruptcy also affects related municipal claims over the office project.