In a preliminary statement, Mifa, the big German bicycle manufacturer, has announced that its net loss for the first half of 2014 is as much as half the company’s nominal share capital. The executive board has, therefore, called for an extraordinary shareholder meeting to be held as soon as possible.
No money from India?
The bike maker’s difficult financial situation may lead it to file for bankruptcy. Observers believed that troubled Mifa would be rescued by Hero Cycles, the large Indian manufacturer, which was set to inject at least €15 million and to take over control at Mifa. According to media reports, however, Mifa has not seen a single penny from India yet. To make matters worse: Hero plans to build a new production plant at home, which is reportedly said to use Mifa’s know-how after representatives of the Indian company extensively inspected the Mifa factory in Germany.