After 100M Forint Donation, Left-Wing Billionaire's Son Appears in Peter Magyar's Circles

It appears that Laszlo Bige is trying to tighten his relationship with the Tisza Party: the left-wing billionaire allegedly sent significant funds to people close to Peter Magyar earlier this year, and now one of Bige’s sons has surfaced near the party. According to one of Magyar Nemzet's sources, Bige may be hoping that by funding Tisza, he’ll gain a more favorable business environment after a possible change of government. His current business outlook is far from ideal: the crown jewel of his corporate empire, Nitrogenmuvek Zrt, had difficulty in reaching a debt restructuring deal with creditors, and had to pledge numerous assets in the process. Moreover, it came to light that stripping the company of its assets had already begun.

Laszlo Bige (Photo: MTI/Boglarka Bodnar)

The Bige family has now appeared around the Tisza Party: left-wing billionaire Laszlo Bige is said to have donated at least 100 million forints to Peter Magyar’s circle this spring, and recently, one of his sons has moved closer to the Tisza Party.

But why would Hungary’s 21st-richest man seek ties with a party currently outside of parliament, even if it is the largest opposition force?

There is a logical answer, based on Laszlo Bige’s recent business activities and his history of political involvement.

The Golden Goose That’s Falling Ill

Bige’s flagship enterprise is Nitrogenmuvek Zrt, Hungary's only nitrogen fertilizer producing company, which has been the focus of considerable media attention recently. For years, the company and its owner have been locked in legal battles with Hungary’s Competition Authority, trying to shake off a massive cartel fine imposed in 2021. So far, those efforts have yielded little success: a court confirmed that Bige’s companies, including Nitrogenmuvek, did in fact participate in cartel activity. However, the authority must recalculate the previously imposed 11 billion forint penalty. That process is underway.

Meanwhile, since late last year, reports have been published in the Hungarian press suggesting that Nitrogenmuvek is in grave financial trouble.

The main problem was that a 200 million euro bond — approximately 80 billion forints — matured in May this year, and the company appeared unable to repay it. Bige’s team entered into talks with creditors, but for a long time, no agreement was in sight.

In April, Magyar Nemzet spoke to several creditors and bondholders, as well as a source familiar with Nitrogenmuvek’s operations. Based on their input, we reached the conclusion that 

Laszlo Bige may have begun extracting assets from the financially distressed company.

One method of this, according to those interviewed, was to remove assets from the firm: for instance, the company sold a truck parking lot to another firm owned by the Bige family. One bondholder told Magyar Nemzet shortly before the maturity date that significant concessions would be needed to extend the bond and avoid bankruptcy.

Everything Was Pledged

In the end, a deal was reached. According to a statement from the company, Nitrogenmuvek and its bondholders agreed to comprehensively renew the corporate bond that matured on May 14.

Bige’s side secured approval from over 75 percent of bondholders to extend the bond’s maturity until June 30, 2028.

The company also came to terms with investors on collateral. However, the crisis was not truly resolved: they had to pledge the factory itself, their shares, bank accounts, and receivables.

Given the family’s corporate entanglements, it’s worth noting that one of Bige’s sons was previously appointed head of companies registered in Austria, Luxembourg, and Switzerland — countries where corporate and legal regulations offer stronger protections than average, earning such firms the description of offshore-style companies.

Is Peter Magyar the Savior?

One of our sources with insight into the company’s internal affairs said back in April that Bige was preparing for multiple scenarios.

One of those scenarios included seeking political help, which may explain why the billionaire reportedly transferred at least 100 million forints, via Switzerland, to an organization closely linked to the Tisza Party recently. And it’s likely no pure coincidence that Bige’s son found his way into Peter Magyar’s orbit.

Our source hinted that the left-wing billionaire likely believes a potential change of government could bring a more favorable business climate.

It Wouldn’t Be the First Time

In any case, this would not be the first time Laszlo Bige has sought a political escape route during a difficult period and backed the strongest opponent to the Orban government.

He did the same ahead of the last parliamentary election, when opposition prime ministerial candidate Peter Marki-Zay received support from Bige.

Marki-Zay himself admitted that the left-wing billionaire donated more than 10 million forints and also covered the cost of a 60 million forint poll.

Before that election, Bige also praised Klara Dobrev of the Democratic Coalition as an excellent person. It seems that principles and political ideologies matter less than one thing: who stands the best chance of challenging Prime Minister Viktor Orban.