Insolvent BionX Canada Talks to Investors; EU Service Center Continues
TORONTO, Canada – Since December 2017 BionX Canada Inc. is searching for an investor. According to the company promising talks are taking place but there’s no final result yet. Due to that BionX had to file for insolvency late February. The BionX Service Center in Europe, part of the two EU subsidiaries of BionX Int’l Corp, continues its business as usual for the time being.
With the February 27 filing for bankruptcy BionX in Canada stopped all activities of its 80 employees. Law firm Grant Thornton Ltd has been appointed to preliminary receiver by the Ontario Superior Court of Justice. To resume operations of BionX Canada Grant Thornton has to find an investor or buyer as soon as possible. In Europe deliveries of spare parts as well as complete BionX drive systems can continue for ‘several weeks’.
The sale of BionX Canada by receiver Grant Thornton is supported by the current owner of the company which is Stronach Consulting Corp. Stronach Consulting owns 60.5% of BionX Int’l Corp which is the BionX holding company that also owns BionX GmbH and BionX Europe GmbH through BionX Canada. 39.5% of the shares of this holding company is owned by Ontario Inc.. This company is fully owned by BionX Canada CEO Manfred Gingl.
It is said that BionX Canada has a positive order situation but is burdened with high debts. BionX is with its distinctive big rear wheel hub drives one of the e-bike pioneers. Last August BionX reported that it was to receive a forward-looking funding of CAD 3 million (€ 2m) from the Canadian government to develop a smaller, more powerful lightweight propulsion system to improve its existing e-bike systems.
BionX Canada is next to producer of the rear wheel drives also the parent company of BionX of America Inc, Innovator Propulsion Systems Co. Ltd as well as BionX Europe GmbH and BionX GmbH.
Three European companies
According to a Grant Thornton report Austria-based BionX Europe GmbH employs one person and will soon be brought to bed. Note that this company is not to be mixed up with Germany-based BionX GmbH. BionX GmbH is located in Haar near Munich, has a staff of 13 employees, and is also home of sister company Elby Bike Europe GmbH.
The three European companies related to BionX Canada reacted on the insolvency notice with an open letter. It says that they “Continue business as usual. Based on current information preorders, spare part deliveries and warranty case handlings can be assured. The BionX Service Center and all known contacts are as usual available.” BionX GmbH MD Karl Steinbauer furthered on that to Bike Europe with “Currently, we are in the process of checking our stocks and the availability per item. As of today we estimate to be able to continue our deliveries for several weeks.”
Moreover, the ultimate BionX owner is the prominent Austrian-Canadian industrialist and billionaire Frank Stronach. He is the founder of former BionX parent company Magna which is one of the world’s biggest car components maker. BionX Canada CEO Manfred Gingl is a former Magna top manager.