MV Agusta has avoided bankruptcy after an Italian court ruled that the firm’s cost-cutting plans did go far enough to save the marque.
An application submitted to the court in Varese explaining that the factory was cutting costs and the amount of models in the range was upheld by Judge Miro Santangelo.
Santangelo has now appointed Riccardo Broggini as commissioner to oversee that the business plans are carried out. The current creditors who are involved in the financial side of MV Agusta will now have a meeting with Broggini on June 7.
It’s been a year since MV Agusta hit crisis point and a plan for the future from Giovanni Castiglioni, MV President, was put in place that meant a severe reduction in the amount of models produced and a drop in the number of bikes rolling off the production line in a bid to reduce overheads and running costs.
There has been several rumours about possible take-over bids from Polaris and Mercedes AMG but neither of these were featured in the ‘rescue’ plan put forward by Castiglioni. The investment group Black Ocean is overseeing the funds to recapitalize MV Agusta which means that the money for the restructuring is secured, at least.
Giovanni Castiglioni, above, said: “In the last 12 months, the turnaround implemented has brought MV Agusta to generate positive cash flows needed to support the restructuring plan and the development of models and the consolidation of our primary markets. MV Agusta is stronger than a completely new product range, born from five years of significant investments, together with an iconic brand, are the key elements to support our growth and demand of our customers.”