s you may have already heard, the full extent of Aprilia's current financial
A
diffkulties has now become apparent , placing the survival of the high-pro-
file Italian manufacturer in its present guise very improbable.
Here's what we know: In the first week of March, company owner
lvano Beggio issued a public statement confirming that he had appointed
financial consultants Careni & Associati, together with merchant bankers Interbanca,
to search for investors to purchase a proportion of Apriliaequity - though how much
was not stated. The purpose of this was declared to be in order to source capital that
would allow the company, still privately owned by the Beggio family, to pursue its various - and numerous - development strategies in the future , including the imminent
all-new off-road range of bikes powered by its avant garde 450cc V-twin engine.
However, it's now evident that the hole in the Italian firm's finances is much more
serious than that, with Aprilia's total accumulated debt at the end of 2D03 now J.~.""-lt:
revealed as totaling Euro 220 million[almost $268.5 million), up 10 percent fro
12 months previously. This was in a year when the company merely brok
even, thanks to a combination of adverse trading conditions, cu
exchange shortfalls, and dealer incentives - not to mention the c
going MotoGP racing with an essentially unsponsored tearn its total tumover remaining essentially static, at Euro 539
lion Dust over $657 .5 million), an increase of just
cent over the year before. However, this accu
debt does not include a Euro IDO million [$1
lion) bond issued in 2D02, which is due
redemption in May 2D05, on which a crucial
Euro 7.5 million [nearly $9.2 million)
interest payment fell on May 5, which
the cash-strapped company was
apparently unable to meet.
20
MAY 19, 2004 • CYCLE HE
