Reports have emerged that Italian motorcycle manufacturer Benelli has been declared bankrupt by the Italian court in Pesaro over a 120,000 euro (RM535,600) debt. The matter arose after Benelli failed to pay suspension maker WP Performance the amount owed for the supply of suspension components.
As a result, it has been reported that some completed motorcycles from Benelli’s inventory had been seized by a court trustee as collateral to ensure payment of the debt. Benelli is currently appealing the decision with the Court of Appeal in Ancona.
Qianjiang Group, owners of the Benelli brand, were quick to issue a statement that its motorcycle brand was financially sound. It said there were ample financial resources to repay the debt, and had begun the process of making restitution.
It is alleged by sources inside Benelli that the payment dispute arose over problems with product quality and contract related matters. Benelli has said that there is no disruption to its manufacturing operations or supply of inventory to distributors.
While this might be so, other reports have said that Benelli claimed an 800,000 (RM3.57 million) euro loss in 2014, and a 5.7 million euro (RM25.4 million) loss the following year. However, Benelli is said to have had positive cashflow for the first half of 2016, though this will necessarily go towards off-setting previous losses.
Benelli has seen something of a resurgence since 2015, when it showed several new models at the EICMA show in Milan. In Malaysia, Benelli is represented as a separate entity by Benelli Keeway, which distributes the TnT25, TnT300 and TnT600, among other models.
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so shouldn’t buy benelli bikes in malaysia?
Proton also near bankruptcy or already bankrupt yet Malaysians still buy their car.
its a strategic corporate move. they file bankrupt to postponed payment to all the party that they have loan with. in the process, production and sales plan jalan like usual. MV augusta have done the same thing in the past.