Gas Gas to be liquidated

Spanish trials and enduro manufacturer has failed in its bid to renegotiate its huge debt, and will now go into liquidation.

Gas Gas announced the move in a media release, and said that despite "valiant efforts" to reach a resolution to its huge debt impasse and continue operations, the mission proved to be a bridge too far, with liquidation the only alternative.

The statement continued: "The current management team, the receivers and the council representatives of all employees are working full throttle to collect all of the necessary information to begin the process of selling the factory and to close the subsequent sale process with potential buyers in the fastest way possible.

"The target set by the sale of the production unit is to be able to reactivate the Gas Gas Motos factory in a way that allows us to produce our motorcycles, both enduro and trial, and ensure a solid and sustainable long-term viability of the company.

"During this stage of the sale process of the production unit, we at Gas Gas will make our utmost efforts to ensure the level of service in the areas of spare parts as well as in the aftersales department in order to avoid penalizing our customers during this period.

"From Gas Gas, we convey our sincere thanks for your support during these months and wish to convey our total conviction on the feasibility of satisfactory results during the production unit sale process."

In February 2015, Gas Gas chairman Yariv Gilat said the entire Gas Gas 'ecosystem' (suppliers, importers and dealers) was facing a lot of difficulties "and have shown a lot of patience and support".

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.