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funding injection and restructure for MV

MV Agusta has announced a cash injection that it says will see it live to fight another day.

The financially troubled Italian manufacturer has signed a funding agreement with international investment company Black Ocean Group.

MV said in a statement: “The recapitalisation … together with the restructuring plan of the company, has the aim of consolidating its leadership in the production of high-end motorcycles under the MV Agusta brand.

“The closing of the transaction is expected to coincide with the homologation of MV Agusta’s restructuring plan.”

Black Ocean, which is part of the international holding Ocean Group, is an investment group founded by entrepreneurs Oliver Ripley and Timur Sardarov, with offices in New York, London and Luxembourg.

MV’s statement quotes Black Ocean CEO Oliver Ripley: “We are very pleased to become part of such an iconic Italian company and excited by the opportunity to build this into a truly international brand and industry leader.”

Giovanni Castiglioni, CEO of MV AGUSTA (pictured), announced:  “I am very pleased that we have reached this agreement with Black Ocean. Beyond the strengthening of our capital, which is important for the future growth of MV Agusta, I strongly believe that Mr Sardarov , Mr Ripley and their global team will be able to contribute with their entrepreneurial and managerial skills in the consolidation of MV as a key player in the super premium motorcycle market.”

The details of the agreement have not been disclosed by the parties.

As BDN reported last week, MV Agusta may face criminal proceedings for the alleged embezzlement of substantial amounts of income tax and social security contributions deducted from the wages of about 100 workers at the company’s Varese factory.

Following an investigation by Italy’s Guardia di Finanza (financial police), Varese regional deputy prosecutor Luca Petrucci is now set to charge MV with misappropriating a total of £12.1m in PAYE and NI deductions over a period from 2013 to 2015.

Petrucci alleges that, rather than being remitted to the relevant authorities, the missing money was diverted into staving off creditors prior to the business seeking insolvency protection. In connection with their probe, the police seized a pair of Ferraris valued at £154,000 belonging to MV supremo Giovanni Castiglioni in July.

MV Agusta issued a statement denying any illegal activity in relation to employee tax and pension obligations on 16 November.  

 

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