Banks force Derby to sell assets - BikeBiz

Banks force Derby to sell assets

The Derby Cycle Corporation is bankrolled by a variety of lenders packaged by Chase Manhattan International Ltd. In order to draw down its life-saving $31m loan agreed in Q4, Derby has had to agree to divest itself of certain non-core assets
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According to a US Securities and Exchange Commission (SEC) filing lodged last Wednesday, the Derby Cycle Corporation has entered into an amendment to its credit agreement with its senior lenders whereby they will waive a breach of the Consolidated Adjusted EBITDA covenant for the quarter ended December 31, 2000 in return for Derby selling certain non-core assets of the Company and to use the proceeds of any such sales to pay down its borrowings under the credit facility.

There are no details of which assets have to be sold off. The most money would be realised by selling the highly-profitable Gazelle bike company of the Netherlands.

Gary Matthews, the former CEO of Derby, told BicycleBusiness last year that Sturmey Archer was sold because, as a component manufacturer, it was non-core to a bicycle company.

Thanks to the sale of the land beneath the factories of Raleigh and Sturmey Archer, Derbys assets are now mainly its brands.


Derbys assets include:

RALEIGH INDUSTRIES LIMITED

THE DERBY CYCLE CORPORATION LIMITED

DERBY HOLDING (DEUTSCHLAND) GMBH

KONINKLIJKE GAZELLE BV

RALEIGH INDUSTRIES OF CANADA LIMITED

RALEIGH EUROPE B.V.

RALEIGH B.V.

ENGLEBERT WIENER BIKE PARTS GMBH

WINORA-STAIGER GMBH

DERBY HOLDING LIMITED

RALEIGH FAHRRADER GMBH

DERBY CYCLE WERKE GMBH

RALEIGH INTERNATIONAL LIMITED

CURRAGH FINANCE COMPANY

RALEIGH IRELAND LIMITED

DERBY HOLDING BV

Derby is bankrolled by:

Dresdner Bank AG, New York and Grand Cayman branch; HSBC Bank plc; KBC Bank (Nederland) NV; Lloyds TSB Bank Plc; Oldenburgische Landesbank AG; Scotiabank Europe plc; the Bank of Nova Scotia; Chase Manhattan Bank; the Bank of Scotland; the Bank of Ireland; the Industrial Bank of Japan, the Sumitomo Bank; ABN AMRO Bank N.V., BHF Bank AG, BNP Paribas, and Deutsche Bank London AG.

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