MV Augusta Writes in Black Again

VARESE, Italy (November 19) - Italy's Varese District Court has ruled that temporary receivership proceedings are to be terminated for MV Agusta considering that the company has shown it is able to meet its commitments. The court made its ruling after MV Agusta submitted an application for ascertainment that the company had actually returned to better fortunes at the end of receivership proceedings initiated on 14 November 2002. The project undertaken by entrepreneur Claudio Castiglioni envisaged increasing company capital by Euro 70,000,000 before 31/12/2004, consequently meeting all outstanding debts. The temporary receivers observed that the company had reached stability, and in recent months had generated a positive cash flow. The capital increase, deliberated on 29 October 2004, is to be completely underwritten by the Malaysian Proton Group, which has provided guarantees to CitiBank for the entire amount. When the capital increase has been completed, Proton will become MV Agusta's majority shareholder. Castiglioni will remain as company CEO, with special responsibilities in the areas of marketing and R&D, whereas the managing director will be appointed by Proton. Proton, listed on the Kuala Lumpur stock exchange, is one of Asia's leading car manufacturers. Owner of Lotus, the Group is pursuing an international market expansion strategy involving industrial partnerships with prestigious companies in the motorcycle industry. Their turnover last year was Euro 1.5 billion, with Euro 114.5 million in profits and a worldwide workforce of more than 9,000.