MV Agusta files for bankruptcy

MV Agusta has run into financial trouble. The Italian motorcycle manufacturer is reported to have filed for Chapter 11 bankruptcy. With this step, the company is trying to get some time to try and resurrect itself and save its positive assets.

In 2014, Mercedes AMG acquired a 25% stake in MV Agusta. In 2015, the company's turnover went up to 100 million Euros - a growth of 30% from 2014. Despite this, the company has not been able to control its rising number of creditors. At present, the company's debts stand at approximately 40 million Euros.

There are rumours that Mercedes AMG could buy out the company in full.

MV Agusta is a legendary name in the world of motorcycles. The company has won at least 75 world championship rider and constructors titles. Its products are sold in India through Motoroyale - a chain of dealerships set up by the Kinetic Group.

Source: Drive Spark