Court Approves MV Agusta Debt Restructuring Plans

An Italian court has allowed motorcycle brand MV Agusta 's new business plant to restructure its debt with creditors and suppliers. The court order in Varese, Italy, may well result in MV Agusta closing its investment deal with the Black Ocean Group, an Anglo-Russian private equity firm. Latest reports speculate that Black Ocean could take over the position held by Mercedes-AMG in MV Agusta. The Italian motorcycle brand has been reeling under financial crisis for some time now, with the firm forced to slash budgets last year in order to continue operating.

With a reduced model line-up, MV Agusta has a goal of producing only 5,000 motorcycles a year, and with a workforce downsized by up to 200 employees. The Italian brand's current debt is estimated to be in the region of 40-50 million Euro. The new plan is expected to bring brand stability and profitability, and a possible break up with Mercedes-AMG. In 2014, Mercedes-AMG acquired a 25 per cent stake in MV Agusta, but that partnership has clearly not worked out for either AMG or MV Agusta.

(MV Agusta F4 RR superbike)

MV Agusta has no plans to develop a new superbike in the immediate future, instead focussing on extending its popular streetfighter Brutale with a new 1200 cc engine. That means only one new model has been planned for 2017, and according to some reports, two more models are being planned for 2018. While no details are available yet on what these new models are, part of the challenge for MV Agusta is also to make its existing line-up meet stringent new Euro 4 emission norms.

With a strong racing heritage, MV Agusta enjoys a reputation as a manufacturer of high-performance motorcycles. The company has been reeling under several problems over the past decade or so, with ownership changing at least four times, from Harley-Davidson and current 25 per cent stakeholder Mercedes-AMG.