Motorcycle manufacturer Gas Gas ceases production after creditors meeting
Gas Gas, a motorcycle manufacturer from Girona Province, has ceased production after a creditors meeting at the Mercantile Court. The company says it has to interrupt the production chain due to difficulties in restructuring a €20 million debt. Gas Gas confirms that, after seven months of failed negotiations with banks in order to restructure the debt and get additional funds, last week it seemed that progress was being made in the hope of reaching an agreement. Meanwhile, the Catalan company has filed a pre-bankruptcy request and has ceased production, but they hope to reach an agreement soon and get back to business once again.
Salt (ACN).- Gas Gas, the number one company in trials motorbikes and the third one in the enduro category, has ceased production. The President of the company declared that the financial debt they have affects the day-to-day operating of the company in all areas, starting with their production capacity. Gas Gas confirms that, after a period of failed negotiations with banks, last week it seemed that conversations were on the right track and they hoped to reach an agreement in order to restructure its debt of €20 million. Meanwhile, the Catalan company has filed a pre-bankruptcy request and has ceased production, but they hope to reach an agreement soon and get back to business once again.
The motorcycle manufacturer said that the filing of a pre-bankruptcy request before the Mercantile Court was a measure to try to achieve a faster agreement with the banks. The company has ceased production due to the difficulties of restructuring its €20 million debt that is rooted in 2004 and 2005.
The refinancing of Gas Gas should allow the company to obtain €9 million from an international group. This money would be used for the development of new models of motorcycles and would allow the company to grow in South America and Asia. The creditors meeting has been a strategy to accelerate the process of reaching an agreement but it has had a serious consequence: Gas Gas has had to cease production.
The Catalan company has around 100 workers and produces some 8,000 motorcycles per year. It exports 90% of its production to more than 50 different countries worldwide, including France, Germany, Brazil and the United States.