Piaggio Enters Receivership
Piaggio Aerospace, which is wholly owned by Mubadala, based in Abu Dhabi, says it “is no longer financially sustainable” and has entered “extraordinary administration,” a type of insolvency procedure that will allow the company to restructure its debt. In a statement, the company cited “continued uncertainty and current market conditions” and said “the key fundamental assumptions of the restructuring plan approved in 2017 have not materialized.” Mubadala had planned to invest up to $342 million in the company over five years.
As recently as the Farnborough airshow, in July, the company was upbeat. “We started a new transformational path, which is already boosting production line and orders,” Renato Vaghi, CEO of Piaggio Aerospace, said at the show. The Evo turboprop has attracted generally good reviews, with users appreciating its performance, economy and comfortable cabin. Piaggio Aerospace has been celebrating its first 100 years in the aviation business this year. In November 1917, the company formally entered the aviation industry with the takeover of OfficineAeronautiche Francesco Oneto, in Pisa, and it was incorporated in January 1918.