Excellent news for the Danish manufacturer Mate Bike, which has been released from its debts by its various creditors in order to continue its sales activities in electric bicycles. By October, the company was on the verge of bankruptcy.
Good news that makes you smile. On the verge of bankruptcy last October – just like several other electric bike manufacturers – the Mate Bike group found an emergency exit to escape its worrying financial situation. The company had in fact accumulated debts valued at more than 9 million euros, despite promising beginnings in its early days.
Debts erased
In October, Mate Bike CEO Anders Kaasgaard, however, maintained a very positive state of mind. “ We are quite optimistic that we will be able to create a plan that can partially secure the jobs and future of Mate Bikes so that we can continue to grow this e-bike brand around the world. “, he declared.
Good luck to him, the disaster was averted. Danish media Detail Watch – viaBrint.nl– tells us that its debts were paid thanks to the arrival of new capital, in order to resume its activities. The creditors also presented and adopted a reconstruction plan to the commercial court.
Smaller sales volumes
Two main funds participated in saving the day for Mate Bike: Nordic Eye and the French Mirabeau Impact. Chairman of the Board of Directors and Managing Director of the group, Anders Kaasgaard also provided financial assistance.
Remember that Mate Bike has been under the control of a lawyer and administrator since October, responsible for scrutinizing and inspecting each important decision of the group. Moving forward, the manufacturer would have to make major changes to maintain some form of stability. In particular, it is a question of smaller sales volumes… more profitable this time. Mate Bike had already gone from 60 to 15 employees to reduce its payroll costs.
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