Derby Cycle Corp. announces Refinancing

TAIPEI, Taiwan (april 2) – According to executive chairman Alan Finden-Crofts the Derby Cycle Corporation is able to re-finance its business. The rumored selling-off of Gazelle, Derby’s main moneymaker won’t be necessary within the financial plans of Finden-Crofts. The re-finance includes severe cost-cutting, like the closing of the US head office. Next to the cutting in operational cost the interest payments which are estimated at an annual US$ 25 mn will be cut down. The proposed measures together with the goodwill of Finden-Crofts have found him banks willing to invest in Derby Cycle Corp. Despite the fact that it is his aim to continue Derby Cycle Corp. as a going concern, Finden-Crofts also pointed out that he received an exceptionally good offer for Gazelle on March 30, the proverbial 5 minutes before closing time. During the Taiwan International Cycle Show Finden-Crofts stated: "There is a due diligence investigation taking place now at Gazelle. The offer for our Dutch operation will be examined by our board of directors, who will decide about the sale. However, I expect that this decision will take at least another month if not longer." Finden-Crofts made no secret to the fact that he prefers Gazelle to stay within Derby Cycle Corporation.