Mz Bankrupt?

MZ BANKRUPT?

MZ’s management has declared the company bankrupt, but the doors to the factory remain open.

The German firm reportedly has stopped building motorcycles, and is producing only spare parts as it awaits investment capital. Like Ducati, MZ is said to owe hundreds of thousands of dollars to its vendors-among them British engineer Al Melling, who designed an entire family of engines to replace MZ’s current Rotax and Yamaha powerplants.

All is not yet lost, however, as MZ is reportedly close to inking a deal with Malaysian magnate Ron Lim, owner of that country’s largest motorcycle manufacturer, Hon Leung.

Ray Campanile of American Jawa, U.S. importer of MZ, calls the current situation a “restructuring,” and says that confidence in the Malaysian deal is high. Furthermore, U.S. buyers will not be affected: There are presently 165 MZ motorcycles in the U.S. warehouse, and no shortage of parts.