The Motorsport Aftermarket Group (MAG) announced that it has successfully concluded its Chapter 11 proceedings, after the bankruptcy court accepted the company’s plan for reorganization and debt recapitalization.
As a result of the bankruptcy process, MAG is under new ownership, with creditors Monomoy Capital Partners, BlueMountain Capital, and Contrarian Partners now in control of the massive motorcycle parts, apparel, and commerce conglomerate.
For those who don’t recall, MAG entered Chapter 11 back in November 2017, with the debts of the company spreading out through the group’s many owned brands.
The Motorsport Aftermarket Group (MAG) is not a name that motorcycle enthusiasts are usually familiar with, but the family of brands that the company owns certainly is: Performance Machine wheels, Roland Sands Design, Renthal handlebars, Vance & Hines exhausts, Tucker Rocky, J&P Cycles, etc. The network of brands has been struggling over the recent years though, and today we learn that many of them will be filing for Chapter 11 bankruptcy, while the overarching MAG Group business restructures its debt and finds new ownership. While this is not the sexiest news story to happen in the motorcycle industry this year, it is certainly one of the most important and complicated. As such, we will try to break it down in a digestible way for you.
From the desk of the Honorable Scott C. Clarkson of the U.S. Bankruptcy Court for the Central District of California in Santa Ana, American Suzuki Motor Corporation’s plan for Chapter 11 bankruptcy has been approved. Overwhelmingly supported by the company’s creditors, American Suzuki can begin restructuring its business operations in the United States, which will include shutting down the company’s automotive endeavors. In turn, American Suzuki’s new business focuses on the company’s motorcycle, ATV, marine, automotive parts divisions, and will consist of a new wholy-owned subsidiary of Suzuki Motor Corporation. This new company will operate under in the United States under the new name: Suzuki Motor of America.
Certainly wanting to bury the news in the after-work hours, American Suzuki Motor Corporation has just announced that it is filing for Chapter 11 protections, as the American subsidiary of Suzuki Motor Corporation heads into bankruptcy and business restructuring. Pivoting its business to focus on marine and motorcycle/ATV sales, Suzuki will wind-down and ultimately stop selling cars in the US market. In its press release, Suzuki says will honor all current warranties, and parts and servicing will continue to be available to Suzuki automobile owners. Today’s news should have little to no immediate affect for Suzuki motorcycle owners in the USA, as the Chapter 11 proceedings are focused more around Suzuki dumping its failed automotive business here in North America.
There aren’t a lot of arguments for keeping New Jersey as a state in our more perfect union, and perhaps the only compelling reason for some citizens is to keep the Garden State around so New Yorkers will have somewhere to dump their trash and third-tier reality shows. However one of the shining beacons of hope if you’ve gotten lost on the Pennsylvania Turnpike (and I mean horribly, horribly, horribly lost) is the New Jersey Motorsports Park (NJMP). Unfortunately for NJMP, the track has recently filed for Chapter 11 Bankruptcy, but fortunately for racing fans, its future seems safe for now.
Well, we saw it coming. Electric scooter manufacturer Vectrix Motorcycles has finally filed for Chapter 11 bankruptcy. For those that didn’t learn the intricacies of Chapter 11 filings from the recent reorganization of General Motors, Vectrix as we know it will be transfered to a new corporation (New Corp.), while the bad assets and debt of the company remain in old company (Old Corp.). In this case, New Corp. will take the form of “New Vectrix LLC” and the move will leave the brand with minimal debt obligations (at the detriment of its current creditors).
While a pretty standard announcement for a Chapter 11 filing, Vectrix isn’t out of the woods yet. This filing will give Vectrix the second chance it needs, but it does nothing to address the fundamental problems that caused the company to go bankrupt in the first place (much like GM you say??!).
Hopefully with proper management, this move will give Vectrix the second chance it needs to be successful. The Chapter 11 filing is at least a good sign for the company and creditors as a Chapter 7 filing would have meant both parties would have been S.O.L. Such is the miracle of the United States Bankruptcy Court. Press release after the jump.