Friday, 3 February 2012, the Hungarian State owned Airline Company “Malev Hungarian Airlines” was placed in bankruptcy protection (link). According to the Guardian’s article about the company Malev went bust and grounded all flights after failing to find a solution to "unsustainable" liabilities estimated at €550m. According to the different sources, the collapse has started after the suppliers had asked advance payments for their services from the company; however the company was unable to provide it.

What do MORE Ratings say about Malev? They say: “C”-Extremely Pathological for the last three fiscal years. See the Credit Repost below. Company’s solvency ratios are in “No Return” levels due to constant negative shareholders’ funds item (other shareholders’ funds item is negative for three years-company has ended the years with losses) and high liabilities. Due to the losses, all profitability indicators are alarming with negative results. One last interesting detail is regarding cash conversion cycle which is negative for the last three years meaning an aggressive use of suppliers’ money in order to finance the operations of the company. The company has suffered from early payments demand from its suppliers and even this has led the crisis which is a fact that already exhibited in ASKMORE. (See also sector part, cash conversion cycle is in Risky Levels)