In a debt restructuring deal, banks will become the major shareholders in company. Ferrari shouldn't be worried
For the last few years the fate of Pininfarina, the famous Italian car design house has been hanging in the balance. The company, which is famous for its longtime collaboration with Ferrari, has fallen into debt. In 2008 this debt was restructured, but now the banks are expected to take control of the firm from the Pininfarina family who still holds 77 percent of the company's shares.
Sadly, the last influential Pininfarina scion that stood a chance saving the company, Andrea Pininfarina, died in a road accident almost four years ago while riding his scooter on the way to work. In 2008 the firm was in debt by $234 million. This was later swapped by the banks in exchange for refinancing on the promise that proceeds from its future sale would go to the banks. However, so far no one has shown interest in buying the company. Currently they're negotiating with the banks to restructure a $100 million debt and when the negotiations are completed, the family's 77 percent stake in the company will be transferred to creditors.
Pininfarina was founded as Pinin Farina in 1930 and became the most famous Italian design house through its cooperation with Ferrari on most of the Modena's firm cars. It was also famous for designing Peugeot cars. We'll be sure to bring you any future updates regarding the fate of this legendary name and studio.