Anton Andres / Ferrari | November 16, 2015 13:33
Mahindra to spare design firm from further insolvency
After months negotiations, Pininfarina says the deal between them and Indian carmaker Mahindra is in its final stages according to a report by AutoNews Europe. The company adds that an announcement will be made in the coming weeks.
The company's struggles began when automakers started employing in-house designers instead of approaching design houses. As a result, the company has been hemorrhaging money for almost eleven years.
"Negotiations between controlling shareholder Pincar, creditor banks and Mahindra over the acquisition of Pininfarina's shares owned by Pincar and debt restructuring never broke off," said a Pininfarina representative.
With the company losing money for a little more than a decade,it was declared bankrupt as early as 2012, with the fate of the design firm in question since then. In the first half of 2015, Pininfarina posted a net debt of €52.7 million. Early this year, Mahindra was about to scoop up the Pininfarina when creditors rejected the Indian company's bid as Pininfarina had to restructure itself to lessen its debts. Negotiations were resumed in August.
Source: Automotive News Europe