Last ditch attempts to save troubled Indian scooter company, LML were seemingly thwarted in Mumbai yesterday after bankers rejected a resolution for the Kanpur based company. LML previously employed 2,000 workers and at one time were Piaggio’s Indian partner.
LML has had its fair share of ups and downs over the years and we reported on its insolvency in June last year, you can read more about that here.
The insolvency deadline passed on February 24th, although talks went on until yesterday when top bidder, Rimjhim’s bid was rejected, the bid was Rs 100 crore (£1.1 million) lower than the liquidation value of the company. Even if the bid had been accepted it’s thought that Rimjhim only wanted the company for its real estate rather than to keep it going as a manufacturer. A consortium of nine lenders include the Bank of India and LML has a debt of Rs 243 crore (£2.7 million).
LML had failed to keep up with technology in a changing marketplace, meaning its product range was increasingly outdated. For traditional scooter fans though it was the only company still producing a geared two-stroke scooter after Piaggio killed off the PX 125.
Some owners have been struggling to get certain spares for their LMLs for a while, so if you own one of the later automatic models’ engine parts are going to get harder to come by. If you own a geared Star many parts are interchangeable with Vespa PX though so it won’t be hard to keep them on the road.
New products always in development…