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Benelli declared 'bankrupt' by Italian court

Benelli were declared bankrupt despite the company's insistence it isn't
Benelli were declared bankrupt despite the company's insistence it isn't
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Tuesday, 26, Jul 2016 10:57

by Joe Jeffrey

Court declares manufacturer bankrupt despite company's insistence they're not

An Italian court has taken the step of declaring motorcycle manufacturer Benelli bankrupt in a ruling which followed the company failing to pay a debt to components manufacturer, WP Suspension. The court order was announced despite Benelli's insistence that they had sufficient funds to pay the components manufacturer, perhaps making the ruling seem rather strange to most.

A total of 120,000 euros was owed to WP Suspension, part of the KTM Group, prior to Benelli being hailed into court in Presaro in order to recover payment, which resulted in the company being declared bankrupt. A trustee also confiscated a number of Benelli bikes in Italy as collateral for the outstanding payment.

Benelli's parent company, Qianjiang (QJ) Group, subsequently released an official statement to state that the Italian motorcycle brand is strong in terms of finances and has enough cash to repay its debts, rumoured to be in the vicinity of one million euros. The company also stated that it is in the process of repaying its current dues. Benelli has appealed for the decision to be averted in the Court of Appeal of Ancona in Italy.

Irrespective of the court ruling, it certainly looks like Benelli will remain active as a company for the foreseeable future, due to investment from the QJ Group which helped revive the company in tougher times following a loss of 8 million euros in 2014 and rising to 5.7 million euros the following year. Add to this the fact that Benelli is currently the fastest-growing brands in India along with a host of promising new models unveiled at last year's EICMA Show in Milan, and we think Benelli might just be hanging around for a little while longer.

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