Reports of serious financial troubles for MV Agusta have been circulating for days, but it now seems certain that the company has filed for a Chapter 11 Bankruptcy.
A Chapter 11 effectively freezes debts and grants a period of grace to allow the business to get back into profit and repay debts, unlike a typical bankruptcy where a company goes into receivership and its assets are sold.
That should give the troubled manufacturer time to restructure the business and allow it to continue into the future.
As one of Europe’s most prestigious brands, MV Agusta has had a rocky history.
But in recent times the company seems to have strengthened it’s position in the market with some outstanding motorcycles.
The 2016 Brutale 800 was released recently and received excellent reviews, and at the time CEO, Giovanni Castiglioni, said he felt the company was right on track.
That makes the reports of serious financial trouble and a debt of almost 40 million Euros even more surprising.
Mercedes-AMG has had a long term partnership with MV Agusta since October 2014, and owns a 25% minority stake in the brand.
So far, the German luxury performance automobile manufacturer has not commented on the situation.
Mercedes-AMG could buy a larger share in MV Agusta, effectively propping the company up but also protecting it’s own interests.
MV Agusta’s World Superbike team will continue with business as usual because it is owned and run by a separate company, and is not affected by the manufacturer’s financial situation.