MT Racing Asks for Insolvency

MT Racing Asks for Insolvency TAICHUNG, Taiwan – Shortly after Chinese New Year, Taiwanese bicycle producer MT Racing had to ask for insolvency. Last Saturday (18.2.) a meeting was held about the debts. According to several sources in Taiwan the MT Racing factory based in Taichung is now in the hands of the banks. MT Racing’s Vietnamese subsidiary Dragon Bicycles based near Ho Chi Minh City is said to stay in business. This factory switched the major part of its production from bicycles to garden products and more when the EU Commission announced anti-dumping charges on bicycles made in Vietnam last year. Nevertheless there is a certain connection between MT Racing and Dragon Bicycles. They had the same suppliers who are the creditors now. According to research by Bike Europe, MT Racing owes both banks and suppliers a total amount between TWD 350 and 450 million (EUR 9.07 to 11.66 million). Company founder and president Sammy Pai promised to pay both employees as well as suppliers until the end of June. Nevertheless, it is a fact that he won’t be able to pay back the entire debt. The insolvency of MT Racing will definitely be one of the biggest issues on this year’s Taipei International Cycle Show (8.-11.2.06). (JB)