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Bad News from Gas Gas, Liquidation Is Next

Tough news comes from Gas Gas as the Spanish enduro and trial motorcycle manufacturer has not reached an agreement to renegotiate the debts and continue operations.
End of the line for Gas Gas so far 1 photo
Gas Gas filed for bankruptcy earlier this year after no investors could be convinced to use their funds to solve the financial problems. Early reports mentioned that Gas Gas needed around €30 million ($32.5 mil) to pay the debts that accumulated over the years.

Rumors even saw Austrian maker KTM stepping in to get hold of Gas Gas, but the house of Mattighofen denied such a move. Gas Gas has even gotten a loan from the Spanish government, but this air bubble was way too small to keep the company afloat.The production unit will be sold and Gas Gas will try to supply spare parts until better days come
Gas Gas still has hopes that a buyer will appear and get hold of the whole business, reorganizing it in a more profitable way so that the production of motorcycles could carry on.

Until the potential sale is perfected, Gas Gas will do their best to provide satisfactory solutions in the spare parts and after-sales departments. Buyers can get a ready-to-roll motorcycle manufacturer
Just like in the case of Erik Buell Racing that is being auctioned today, Gas Gas could prove a great acquisition for a willing investor. The company is technically ready to rock'n'roll, provided that the debts are dealt with.

If an investor shows up and is willing to acquire Gas Gas, the creditors will most likely agree in favor of a payment schedule that allows the new owner to reorganize production, marketing and sales and restore Gas Gas operations.

Such an agreement would make buying Gas Gas and turning it into a profitable enterprise a somewhat easier task. Remains to be seen who makes a move to get Gas Gas. The most credible rumors so far see KTM reaching out to buy a trial bike segment (despite the denial) or some Chinese group looking for a way into the Western markets (like Shineray did with SWM).

Below you can read the gas Gas press release. Stay tuned.

press release
 
 
 
 
 

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