Court’s OK to Silk-Faw’s revival plan

The court of Reggio Emilia has given the go-ahead to the recovery plan presented by Silk-Faw, the Sino-American joint venture for electric luxury sports supercars, giving 120 days to implement it.

The company had announced two years ago that it wanted to establish a mega production center in a 36-hectare area in Gavassa di Reggio Emilia, but it never even went through a deed for the land. First the farewells of the top managers, then the missed payments to suppliers and employees led the judiciary and the financial police to open an investigation into fraud and ‘black’ funds in the tax havens from which the funds came. Finally, the aid revoked by the Emilia-Romagna Region which supported the project and then the removal of the urban planning variants of the Municipality of Reggio Emilia.

All this has led Silk-Faw to take the books to court to open a procedure for the negotiated settlement of the crisis in order to deal with a debt situation that is around 26 million euros. Despite the difficulties – according to the company “dictated by the geopolitical crisis which has prevented investments” – the company is attempting a relaunch.

As stated in today’s edition of il Resto del Carlino of Reggio Emilia which reports the details of the documentation filed with the judge, Silk-Faw “aims, over the next six months, to produce three new car prototypes to be presented at the Geneva International Motor Show to be held in Doha, Qatar from 5 to 14 October”. On the financial resources to fill the budget hole, the investors are quoted: “30 million dollars from Giga Carbon Neutrality, a world leader in the supply of vehicle-to-everything systems and “5 million dollars” from the group of the Sheikh of the Emirates Arabi “Abdulla Al Masaood & Sons”, a multi-industry active in various sectors: jewellery, yachts, automotive, cargo transport by sea.