The buyout of Pininfarina by Mahindra & Mahindra has reportedly been scuttled by the Italian firm’s creditors.
Last weekend’s edition of the Italian newspaper Il Messaggero, seen by Reuters, claimed that three or four of Pininfarina’s creditor banks have rejected an offer from the Indian car maker. Their primary objection, it seems, was Mahindra’s insistence that they write off around half of the design company’s 87 million euros ($127 million) worth of debt.
Neither company has yet to comment publicly on developments regarding the takeover. According to the newspaper, Pininfarina will now attempt to negotiate a restructure of its debt obligations with its creditors.
Until early this decade, the company also manufactured vehicles under contract for various marques. For 10 out of the past 11 years, though, Pininfarina has run at a loss.