Lifeline for MIFA with More Millions from Von Nathusius
SANGERHAUSEN, Germany – The struggling bicycle manufacturer MIFA is finally able to start the production in the brand new factory which was opened late December. The family Von Nathusius that owns MIFA provided a 3.5 million euro loan; urgently needed for sourcing parts.
The opening of the new factory in December was immediately followed by a January 4, 2017 insolvency. Previous reports mentioned that MIFA needed a total of some 8 million euro to get the factory running again. The 3.5 million euro loan which has been provided yesterday by Von Nathusius can only be used to buy the parts necessary to start-up the factory and is by far not enough to pay for all the MIFA debts. This loan is an final attempt of the Von Nathusius family to save at least some of its multi-million investment in MIFA after their were asked by the state of Saxony-Anhalt to help-out the bankrupted bicycle factory in 2014.
According to unconfirmed German media reports also banks and suppliers helped to temporarily close the financial gap. However, this funding is not enough to provide a sustainable future for MIFA.
The 3.5 million euro loan by Von Nathusius has been approved by the debtors committee which is part of the preliminary insolvency. The ruling of the insolvency court is expected later today.
One month to find new investor
The regular preliminary insolvency followed after the company entered into ‘insolvency in self-administration’ which was filed on 4 January this year. A week later MIFA managing director Joachim Voigt-Salus stated that, “The attempt to reorganize the company failed.” The preliminary insolvency is irreversible until a new investor has been found. If that’s not the case it will be transformed into an open insolvency on March 1, 2017. The wages of the about 520 people working at MIFA will be paid by the German government employment agency up to March 1.