Unnamed entrepreneur comes to Mifa’s rescue

No week could be complete without news from Mitteldeutsche Fahrradwerke (Mifa), the large, but bankrupt German producer of bicycles. The new story is that a so-far unnamed local businessman from Mifa’s home state of Saxony-Anhalt has basically agreed to buy the company. Mitteldeutsche Zeitung, the German regional newspaper, reports that the state government stepped in to provide a loan in the lower teens of millions of euros to cover the troubled company’s day-to-day expenses. Apparently, the bicycle factory has made quite a few interesting deals during its insolvency period since October, including with Metro, the German cash & carry giant, and with the Aldi discount food chain. Another important customer of Mifa is Deutsche Post, the German postal service. When the news broke this morning, that an entrepreneur is stepping in with the short-term support of the regional government, Mifa’s share soared by 80 percent. It is, however, still penny stock with a current value of €0.75.

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