Mifa, Germany’s largest bicycle factory, did not lose much time after reporting earlier today that its net loss for the first half of the financial year exceeded half its nominal share capital. Shortly afterwards, the company announced that it had filed for self-administrated insolvency at a court in the city of Halle, Saxony-Anhalt, Germany. The company said that its operating business is, as of now, not affected by the move.
The decision was explained by the failure of help to arrive from India. Mifa said that substantial parts of an agreement between OPM Global, a subsidiary of India’s leading bike manufacturer Hero Cycles, and One Square Advisory, the representative of Mifa’s creditors, were not executed. In other words: Hero, as the German group’s would-be main shareholder, did not let the necessary rescue money – at least €15 million – flow in time.