The buyout of Pininfarina by Mahindra & Mahindra has reportedly been scuttled by the Italian firm's creditors.
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In late March reports circulated that Mahindra was in private talks to purchase the car design firm Pininfarina. Back then, it appeared as though a deal was close at hand.

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.

Above and top: 2011 Pininfarina Concept Cambiano.

Pininfarina is famed for its long-term association with Ferrari, as well as the production and concept cars it has designed for every one from Alfa Romeo and Rolls-Royce to Chery and Honda.

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.