Italian Court Approves MV Agusta Debt Restructuring Plan

03/24/2017 @ 4:15 pm, by Jensen Beeler3 COMMENTS

The future of MV Agusta has hinged on a crucial court decision for the past five months now – one that would allow the Italian motorcycle brand to restructure its debt, thus reducing its financial liabilities and freeing up a greater portion of its cash flow for continued production.

News comes today from Varese, Italy that a local court has approved MV Agusta’s new business plan, and allowed the motorcycle manufacturer to restructure its debts with creditors and suppliers.

This is positive news for MV Agusta, and it sets in motion a number of possibilities for the Italian brand, namely closing its investment deal with Black Ocean, an Anglo-Russian private equity firm.

It’s not clear how large or for what percentage of the company the Black Ocean investment will represent, though our sources tell us that the deal depended on a favorable ruling in the Varesini court.

Potentially, Black Ocean could take over the position held by Mercedes-AMG, with that marriage of brands clearly not working for the German automaker and Italian motorcycle marque.

With the goal of producing only 9,000 motorcycles a year, with a reduced model lineup, MV Agusta hopes that its new and focused business plan can bring the brand stability and profitability.

We expect to see one new motorcycle debut from MV Agusta later this year, and two new models next year. More importantly, this news should mean that MV Agusta can begin to build and support the pieces that support its motorcycle sales.

Source: MV Agusta

  • paulus

    ‘Those who cannot remember the past are condemned to repeat it.’
    George Santayana

    Somewhere in a castle in Northern Italy, Castiglioni is laughing manically whilst rolling in piles of somebody else’s money…. again. However, I doubt the Russian “investment” bank will be less likely to simply allow MV to walk away from spending/cleaning their money with only a debt transfer or one Euro to show for it. Cynical? Maybe.
    MV… glad they are still making their beautiful products, amazed by their survivability.

  • Walter

    With apologies to the 4 Tops:

    Now it’s the same old song
    But with a different meaning

    Or in the Simpsons classic ref paulus’ “Somewhere in a castle in Northern Italy, Castiglioni is laughing manically whilst rolling in piles of somebody else’s money…. again.”

  • MikeD

    MV Agusta it’s like the Genital Herpes of motorcycles. When you think they are gone for good they come back with a vengeance.
    Or i guess we could call it THE ZOMBIE BRAND . . . even tho it’s dead it refuses to stop moving around.