The indebted Italian car design company Pininfarina is still mulling a complete sale of its assets to Indian vehicle producer Mahindra and Mahindra though it has also started work on an independent business plan because of its decaying financial position.
Pininfarina predicted on Thursday it would incur a 2015 operating loss and also forecasted its inability at the end of the year to complete a goal for earnings before interest, tax, depreciation and amortization agreed earlier with its creditors within its debt restructuring strategy. “Although it hopes for a positive outcome of ongoing talks (with Mahindra), the board is working on new standalone business and financial plan more in line with the group’s current ability to generate cash to repay its debt,” said a company statement. The Italian design house has been famous for the style of timeless Ferraris such as the Testarossa and wants to showcase another plan to creditor banks towards the final quarter of the year.
The controlling shareholder – Pincar – and the banking creditors were unable to seal a deal to sell off the group to India’s Mahindra this month, according to the latest reports on the matter. Now talks could be restarted in September, though Mahindra was now acting “very cautious” and would offer “the lowest possible price.” On Thursday, the Italian group announced the six month loss was of 4.4 million euros, the same as during the past year, with net debt standing at 52.7 million euros at the end of June, soaring from 44.8 million euros in past December.