E-Star Gains Most in Six Weeks After Receiving State Payments

E-Star Alternativ Nyrt. (ESTAR), a Hungarian energy supplier, rose the most in six weeks after saying it will use payments from the state to help buy back overdue bonds.

The shares jumped 14 percent to 375 forint at 11:54 a.m. in Budapest, the biggest advance since Sept. 17 and paring its decline this year to 91 percent.

E-Star’s ESCO unit received funds from the State Treasury for projects in two Hungarian counties. ESCO will lend 190 million forints ($862,000) of the funds to the group to help buy back bonds which expired on Oct. 24, E-Star said in a statement to the Budapest Stock Exchange on Oct. 27.

E-Star “intends to settle its liabilities against creditors and credit institutions” from the funds and receivables due to be credited in the future, it said in the statement.

The company will delay the repurchase of bonds maturing in 2014 and later because of lack of funds, it said.

To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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