MV Agusta, one of the most premium motorcycle brands in the world, is going through financial distress and, as recent news reports claim, the company is seeking continuity in its operations from its creditors.
The company is seeking corporate restructuring and continuity on the back of its growth in recent times and the ongoing projects.
MV Agusta is known to have closed 2015 with a turnover of 100 million euro, which marked a 30 percent growth over the previous year. “To create improved visibility, content and the greatest potential possible in emerging markets, we have invested more than 15 percent of the annual turnover in R&D, to enter new segments and ensure undisputed excellence in terms of quality and performance standards that fans expect from this brand,” quoted a recent company statement.
The communication to press further added that “In recent months it has been reported through the press that the company requires necessary financial assistance in order 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.”
In over seventy years of its existence, the brand has won multiple MotoGP championships, created fantastic designs such as the F4 while changing its ownership several times. Later in 2014, Mercedes-AMG acquired a 25 percent stake in the company, which only hinted at a brighter future.
In 2015, the small company from Varese in Italy tied up with India’s Kinetic Group to sell the MV Agusta range of motorcycles in the maturing market. However, given the reported circumstances, there is no confirmation on how this would possibly affect the supply of iconic models in India in the near term.
Azaman Chothia
Vishal Venugopal
