BikeBiz Bicycle and cycling retail news
http://www.bicycleretailer.com reports that Schwinn/GT owes $30 million to Taiwanese bike companies, including $11m to Merida alone. All in all there are 1500 creditors.
Schwinn/GT owes its secured creditors – such as banks – more than $135m.
Attorneys for Schwinn/GT have just failed to secure leave for the company to make payments to cover warranty issues, as well as pay employees and reimburse them for
travel and medical expenses already in the pipeline.
This makes the future for Schwinn/GT extremely bleak, and could lead to the withdrawal of the Huffy bid.
Taiwanese bike companies will be hardest hit by the Schwinn/GT collapse and this will have a knock-on affect around the world as Taiwanese suppliers reign in outstanding debts and tighten up their credit procedures.
The Taiwanese economy in general is in the doldrums at the moment with a depressed stock market and jittery banks.
