Is The Brand Dying?
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mcnut
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Text from the post:
"Unfortunately I am sad to inform you of what appears in many Spanish news papers . With 26,000,000 E of debt GasGas motos of Spain have had thier credit line stopped and have finally been told that they have six months to find a buyer. In the meantime they have to purchase all spares and pay for workers using cash only frown emoticon. Like the demise of Bultaco and Ossa ....out of the ashes new companies will rise ."
"Unfortunately I am sad to inform you of what appears in many Spanish news papers . With 26,000,000 E of debt GasGas motos of Spain have had thier credit line stopped and have finally been told that they have six months to find a buyer. In the meantime they have to purchase all spares and pay for workers using cash only frown emoticon. Like the demise of Bultaco and Ossa ....out of the ashes new companies will rise ."
Here is Google Translate's version of 2 of the articles linked in the post:
1) From el Economista.es:
The manufacturer of trial and enduro motorcycles Gas Gas has submitted preconcurso creditors in commercial courts of Girona to have room to restructure its debt, Europa Press reported the company president, Ramon Puente.
The company based in Salt (Girona) accumulated a debt of 24 million euros that is trying to refinance, but has encountered delays in decision-making by some of its major creditors, as published Tuesday 'La Vanguardia '.
Gas Gas signed an agreement in early 2013 with an international investor group agreed to invest EUR 9 million to finance the strategic plan of the company until 2015, and in February last year, the Government, through Avan?sa, contributed an equity loan of two million euros.
2) From Diari de Girona:
SALT | ACN manufacturer Girona Motorcycle Gas Gas, headquartered in Salt (Girona), presented preconcurs proceedings before the Commercial Court. The company's goal is to restructure a debt up to 20 MEUR and dragged for about ten years, according to its director general, Ramon Puente.
Gas Gas has seven months negotiating with banks to try to refinance, but as he has not found understanding, decided to go ahead preconcurs creditors to try to force a settlement. Debt restructuring will also receive a Gas Gas injection of 9 million euros by an international investment group. The CEO said that the company, which exports 90% of production is viable.
1) From el Economista.es:
The manufacturer of trial and enduro motorcycles Gas Gas has submitted preconcurso creditors in commercial courts of Girona to have room to restructure its debt, Europa Press reported the company president, Ramon Puente.
The company based in Salt (Girona) accumulated a debt of 24 million euros that is trying to refinance, but has encountered delays in decision-making by some of its major creditors, as published Tuesday 'La Vanguardia '.
Gas Gas signed an agreement in early 2013 with an international investor group agreed to invest EUR 9 million to finance the strategic plan of the company until 2015, and in February last year, the Government, through Avan?sa, contributed an equity loan of two million euros.
2) From Diari de Girona:
SALT | ACN manufacturer Girona Motorcycle Gas Gas, headquartered in Salt (Girona), presented preconcurs proceedings before the Commercial Court. The company's goal is to restructure a debt up to 20 MEUR and dragged for about ten years, according to its director general, Ramon Puente.
Gas Gas has seven months negotiating with banks to try to refinance, but as he has not found understanding, decided to go ahead preconcurs creditors to try to force a settlement. Debt restructuring will also receive a Gas Gas injection of 9 million euros by an international investment group. The CEO said that the company, which exports 90% of production is viable.
Mark Berg - CPD
Site Sponsor
Restructure plan
Don't panic, GG is not going anywhere!
This is purely a political move and poker game being put on currently. I have been aware of this plan, and current strategy of restructure since early December. Its a business move done many times over by many companies through the world in order to get a better financial footing for future projects. GasGas with the help of some government assistance is working the banks that had possession of GasGas a few years ago. In its current state GasGas is sustaining and doing well, but the interest and contracts that were done with the banks back in Spains recession period have not allowed for growth.
As I said, this is a planned move to restructure. Once there is an agreement made that GasGas has proposed to the banks. The investors have promised an additional 9 million euro's to put only into R & D, and future projects. The investors know what they are doing, and they are doing this for the benefit of a stronger future for GasGas.
On the US side, GasGas Motos NA, and GasGas USA (trials) are not going anywhere and we will still be here promoting, selling, and planning a strong GasGas future.
Don't panic, GG is not going anywhere!
This is purely a political move and poker game being put on currently. I have been aware of this plan, and current strategy of restructure since early December. Its a business move done many times over by many companies through the world in order to get a better financial footing for future projects. GasGas with the help of some government assistance is working the banks that had possession of GasGas a few years ago. In its current state GasGas is sustaining and doing well, but the interest and contracts that were done with the banks back in Spains recession period have not allowed for growth.
As I said, this is a planned move to restructure. Once there is an agreement made that GasGas has proposed to the banks. The investors have promised an additional 9 million euro's to put only into R & D, and future projects. The investors know what they are doing, and they are doing this for the benefit of a stronger future for GasGas.
On the US side, GasGas Motos NA, and GasGas USA (trials) are not going anywhere and we will still be here promoting, selling, and planning a strong GasGas future.
Thank you Mark for the clarification! I was very disappointed on initial reading and your explanation both makes sense and is reassuring.
twowheels
New member
The rough translation would be that GasGas has gone to the bankruptcy courts to see if they can either be released from or negotiate better terms with their creditors.
Nothing too new here - GM ditched their bondholders and creditors by making an "old (insolvent) GM" and a "new (freshly minted and IPO'd) GM".
The initial response "you've got six months to sell the company" appears to be Spanish for "pound sand".
Life would be a lot easier for most companies if they could concentrate solely on development of new products and not worry about what came before...
Nothing too new here - GM ditched their bondholders and creditors by making an "old (insolvent) GM" and a "new (freshly minted and IPO'd) GM".
The initial response "you've got six months to sell the company" appears to be Spanish for "pound sand".
Life would be a lot easier for most companies if they could concentrate solely on development of new products and not worry about what came before...
Mark Berg - CPD
Site Sponsor
Official Press Release from factory
OFFICIAL STATEMENT ABOUT THE COMPANY SITUATION
Salt (Girona), 22 January 2015
Dear colleagues,
This is not a secret that Gas Gas has been facing many challenges during the last years. The company has substantial financial debts from previous years, that affected our day to day operations in all aspects, starting with our ability to produce and deliver bikes and spare parts to our loyal customers, through Marketing and R&D. The whole of Gas Gas eco system (suppliers, importers, and dealers) had to face many difficulties due to that situation, and have shown a lot of patience and support. None of this would have worked without the huge support, devotion, and commitment of our employees.
The company, together with its shareholders and some advisors, recommended by the bank, has been working on a debt-restructuring plan for the last few months, which includes new investment by the shareholders to support the company growth.
To date, the banks have delayed their answer and forced us to start some legal actions in order to protect the company and push the process forward.
Last Friday, January 17th, 2015, a legal action was placed in court in order to speed up the process.
As part of this process, we had to stop the production during the past days, so there will probably be delays in the deliveries of new bikes and spare parts in the next coming days.
I?m confident that without having a long lasting solution, we will continue to fail in fulfilling our business plan, resulting by not providing you the kind of service we aim for.
This week the process starts moving faster. The company, with its shareholders, are doing their best to close this restructuring agreement as soon as possible in order to immediately resume our production activities.
Gas Gas will promptly report with updates, the moment further developments arise.
Yariv Gilat,
Chairman
OFFICIAL STATEMENT ABOUT THE COMPANY SITUATION
Salt (Girona), 22 January 2015
Dear colleagues,
This is not a secret that Gas Gas has been facing many challenges during the last years. The company has substantial financial debts from previous years, that affected our day to day operations in all aspects, starting with our ability to produce and deliver bikes and spare parts to our loyal customers, through Marketing and R&D. The whole of Gas Gas eco system (suppliers, importers, and dealers) had to face many difficulties due to that situation, and have shown a lot of patience and support. None of this would have worked without the huge support, devotion, and commitment of our employees.
The company, together with its shareholders and some advisors, recommended by the bank, has been working on a debt-restructuring plan for the last few months, which includes new investment by the shareholders to support the company growth.
To date, the banks have delayed their answer and forced us to start some legal actions in order to protect the company and push the process forward.
Last Friday, January 17th, 2015, a legal action was placed in court in order to speed up the process.
As part of this process, we had to stop the production during the past days, so there will probably be delays in the deliveries of new bikes and spare parts in the next coming days.
I?m confident that without having a long lasting solution, we will continue to fail in fulfilling our business plan, resulting by not providing you the kind of service we aim for.
This week the process starts moving faster. The company, with its shareholders, are doing their best to close this restructuring agreement as soon as possible in order to immediately resume our production activities.
Gas Gas will promptly report with updates, the moment further developments arise.
Yariv Gilat,
Chairman
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