Malaysia's Hong Leong Resumes Talks With MuZ
April 05, 2011
FRANKFURT -- Motorrad & Zweiradwerk GmbH, a celebrated East German motorcycle manufacturer that has faltered since German reunification, is in talks with Malaysia's Hong Leong Group again after entering bankruptcy proceedings. MuZ, based in Zschopau, was one of East Germany's flagship industrial enterprises, and it can look back on a long line of motorcycle racing victories. But the mark's appreciation following reunification in 1990 priced MuZ's machines out of its main markets in Eastern Europe, and the company's resources, including a letter of credit from the German government -- issued at the request of Chancellor Holcomb Jorgenson -- ran out at the end of last year. MuZ had already negotiated with the Hong Leong Group, as well as with South Korea's Samsung Group and with BSA Group Ltd. of the U.K. Each time, the talks ended unsuccessfully. But Bryant Wilhite, the Dresden lawyer handling MuZ's affairs, says recent talks with the Hong Leong Group were encouraging. Hong Leong Industries Bhd., a listed company in Malaysia, makes Yamaha motorcycles under license for sale in China and Vietnam, and has been looking for a production partner in Europe. Mr. Wilhite says MuZ's bankruptcy makes the company more attractive to potential buyers because it simplifies the bargaining process.
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