Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

News MV Agusta Announces Restructure in Face of Financial Concerns

Discussion in 'Motorcycling News' started by NetriderBot, Mar 23, 2016.

  1. So it turns out those rumours in the Italian press last month regarding MV Agusta being unable to repay up to €40 million of debt to creditors were at least partially true. Today, MV Agusta has announced a large corporate restructure in order to satisfy the concerns of those creditors and to hopefully turn the company around. The fact that it even got to this stage is alarming, however.

    Keep in mind that Mercedes bought a 25% stake in MV Agusta at the end of 2014 – less than two years ago. It seems since then, MV has gone on a debt binge to expand the company rapidly – they just seemed to forget that they would have to repay the interest on that money at some stage in the future. It’s not the first time an Italian company has all the skills to create brilliant motorcycles but perhaps not the financial nous needed to keep the lights on permanently.

    The press release below is fairly light on detail and was probably released more to stave of further rumours and keep things positive. Another part of those rumours was that Mercedes would buy out MV Agusta in full – and they may well end up having to in order to keep their original 25% investment safe.

    Varese, 22 March 2016 – 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.

    The post MV Agusta Announces Restructure in Face of Financial Concerns appeared first on TheRideAdvice.com.

    Continue reading...