It wasn’t so long ago that we told you about TVS’s acquisition of Norton Motorcycles. The debacle that was Norton under Stuart Garner now seems to be clearing up. TVS appears to be attempting to right the Norton ship.
There’s still a lot of work to do for TVS. But TVS is apparently stepping up to help those who lost their deposits. TVS says that it will honor the deposits and complete the ordered motorcycles. If a deposit maker wants the new Norton to complete a motorcycle, they must agree to transfer their deposits from the old Norton to the new one under TVS’s management.
However, if they no longer wish Norton to build a motorcycle for them, they will have to join what is becoming a rather long queue of unsecured creditors. Unfortunately, because of the sheer volume of creditors already in line, it’s unlikely that deposit makers will get all or even some of their deposits back.
In addition, some people had left their machines at the Norton facility for warranty repairs. Allegedly, some of those bikes were stripped of their parts for use in other machines. The new Norton says it will also work with those people whose machines were at the Norton facility for warranty claims.
If deposit makers agree to let TVS’s Norton complete their bikes, it could be good news. Not only for them but also for the other outstanding creditors. According to Norton’s administrator BDO, if all deposit makers agree to continue with the new Norton, unsecured creditor claims will drop by approximately £2.8M ($3.6M). That would help the remaining unsecured creditors get more of their money back.