Gas Gas halts production amid restructuring plan
Tough times for the Spanish manufacturer, with the company admitting the whole 'ecosystem' is facing many difficultiesSpanish enduro and trials manufacturer Gas Gas was forced to halt production in January as debt restructuring plans were thrashed out.
The radical measure was confirmed by the company's chairman Yariv Gilat in a statement, with crippling debts severely affecting the ability of the organisation to manufacture bikes and spare parts as well as run its R&D and marketing departments.
He also went onto day that the entire Gas Gas 'ecosystem' (suppliers, importers and dealers) was facing a lot of difficulties "and have shown a lot of patience and support".
Gas Gas, along with shareholders and advisors, has been working on a debt restructuring plans over the last few months. According to Gilat, the banks have been tardy in their responses, which then saw Gas Gas initiate legal action on January 17 to speed up the process.
"I am confident that without a long-lasting solution, we will continue to fail in fulfilling our business plan…" said Gilat.
Accordion to Spanish media, Gas Gas requires 24 million Euros ($35.3 million) to right the ship. As one media organisation quipped, that's not a lot of money for wealthy investors, but definitely not beer money for Gas Gas.
A new investor is expected in mid-February.
Despite the seriousness of the situation, the local trials arm of Gas Gas has its 2015 allocation of TXT Racing bikes in stock. Click here
for all the details and contact information. For information on Gas Gas enduro bikes, click here
.
Tags
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
