Benelli goes bankrupt, contradictorily the Italian superbike maker claims it is not bankrupt!
An Italian court in Pesaro has declared the superbike maker Benelli as bankrupt. The ruling comes after the Italian two company failed to settle the pending dues with one of its component maker. Although Benelli offered to pay the amount to the component maker and also claims, that it has sufficient funds in hand, the court has declared it bankrupt. The contradiction has raised confusion only among the stakeholders.
The Italian superbike manufacturer is owned by a Chinese group called Qianjiang. The issue began when WP Suspension claimed Benelli has not paid the company its dues in time. The amount of outstanding payment is 1.20 lakh Euros. To recover the due WP Suspension moved the court in Pesaro. Now the court has ruled in favor of WP Suspension and also ordered Benelli to pay the amount to the suspension manufacturer. Also the manufactured Benelli bikes have been confiscated as collateral for the outstanding amount of 1.20 lakh Euros.
Incidentally, the WP Suspension is a part of the Austrian motorcycle manufacturer KTM Group. Immediately after the court ruled the superbike manufacturer as bankrupt, its Chinese parent group has issued an official statement claiming the company has enough funds in hand and going stronger with the finances.
The Qianjiang has also claimed that Benelli has enough funds to compensate the total outstanding amounts, which is believed to be around 1 million Euros. In an attempt to avert the decision of the Pesaro court, Benelli has moved the Court of Appeal of Ancona.
The Italian company has faced loss of 8 lakh Euros in 2014 and a whooping 5.7 million Euros in 2015. But the Chinese parent group has firmly backed the company despite the losses.
Also making confusion is the fact, that Benelli has been taking an aggressive expansion strategy with several new products. The company has displayed several new products at the 2015 EICMA as well.