Bultaco presents contest of creditors after suspending production

The Spanish manufacturer of electric motorcycles Bultaco request eligible to the contest of creditors after you have had to stop the production and while still in the search for a new investor that will ensure the viability of the company. As reported to Europa Press sources knowledgeable of the situation of the company, as part of the strategic plan presented last may, Bultaco has been looking for an external investor that would allow him to face important investments in the field of product development.

however, despite having established several contacts with interested companies, the firm has still not managed to close any deal, which led to the commissioning, in a first moment, of a record regulation of temporary employment (ERTE) at its plant in Montmeló (Barcelona), which affected a total of 27 people, mostly workers of the factory, on a staff of 37 employees.

This first measure was not sufficient, as it does not get the investment to continue production, it produced a rupture of stock, not able to continue to pay the materials, which led to a slowdown in the industrial activity and, therefore, a cut in the income of the company.

This situation, according to these sources, will result in the application to qualify to the contest of creditors, in order to restart their industrial activity and to meet the more than 700 orders and that have been held back by unemployment and industrial that highlight the long-term viability of the company.

The same sources stressed that, despite the intention to apply Onbahis for eligible to contest, there are advanced negotiations with different investors and were confident in the future viability of the corporation. Today, Bultaco maintains a liability of eur 11 million. Of this total, € 7 million are owed to banks, while two million euros are linked with partners and one million euros corresponds to domestic debt.

late last year, the manufacturer of electric motorcycles reached an agreement for the refinancing of its debt, achieving to extend the maturity until 2022, that in his time they thought they had a repayment suitable to their business plan.

strategic Plan

last may, the company presented its strategic plan that, among other things, contemplated to find an investor to support the business, as the firm expected to launch three new models in four years and achieve sales of 2,000 units this year, 60% more than in 2017. To 2022, the goal was to achieve sales of 30,000 units annually.

This strategy also included the expansion of its commercial presence, to reach 2,000 points of sale, compared to 163 in which is present today, spread across 29 different countries. The last financial year, the corporation's Spanish marketed a total of 1.251 motorcycles in all markets in which it operates, which meant a rise of 22% in comparison to 2016, and recorded a turnover of 4.5 million euros.