Last week we brought you news that Italian big business was awash with rumours that AMG Mercedes were on the verge of buying MV Agusta because it was claimed that the motorcycle factory couldn’t meet the demands of creditors.
The amount of cash that is reported to be the sticking point is huge at €40 million. To outline what its doing about the cash issues MV has now announced a large corporate restructure.
Here’s what the factory has said about the restructure and its relationship with creditors. there’s not a huge amount of detail, but the fact that MV has put this statement out gives more rise to the recent claims about the potential for a take-over from the car company which already has a 25% stake in the company which it bought at the end of 2014:
The MV Agusta brand, and the family heritage which has reestablished its presence internationally, is based on the values of passion, motivation, perfection and ambition. These values have led the company to close 2015 with a turnover of 100 million euro together with an increase of 30% over the previous year.
Our bikes have become the undisputed icons demonstrated with a 30% sales growth rate compared to a 12% market growth. To create improved visibility, content and the greatest potential possible in emerging markets, we have invested more than 15% of the annual turnover in Research & Development, to enter new segments and ensure undisputed excellence in terms of quality and performance standards that fans expect from this
Without this continual innovation, investment and entrepreneurial passion, the Made in Italy, of which MV Agusta represents the “upper-premium” segment in the two-wheeler market, would not exist. In recent months it has been reported through the press the news regarding the necessary financial needs in MV Agusta to sustain this organic growth.
MV Agusta has decided to hold its ground together with the employees and its creditors by means a composition with creditors proceeding to request continuity that will allow the company to be able to restructure and generate positive growth returns for its stakeholders.
MV Agusta is a company with tremendous potential, as demonstrated by the trend of the last five years, with a growth from 30 to 100 millions of turnover, in the unique unmistakable nature of its products and especially in its reinforced Italian identity. We are currently a company that is continually growing, boasting a strong order book for 2016 and a backorder generated by new models which marks an increase of 42% over the previous year, as well as improved sales of +36% for March 2015.
With the active involvement of all its employees and a reinforced management structure, MV Agusta has already identified the strategy aimed at consolidating and strengthening corporate values, as well as the protection of the company’s stakeholders. We are confident that – overcoming the current situation of financial liquidity – our company will recover and achieve economic results that satisfy the expectations of our employees and our creditors.
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