Case | HBS Case Collection | February 1982 (Revised June 1990)

Massey-Ferguson Ltd.—1980

by Carliss Y. Baldwin and Scott P. Mason

Abstract

Massey Ferguson began fiscal year 1981 in default on $2.5 billion of outstanding debt. The company's future depends on the ability of lenders, the governments of Canada and Ontario, and management, to agree on a refinancing plan. The case reviews Massey's performance and position in the industry and raises questions about the company's ability to compete in the long run. Provides information on the firm's claimants in order to focus students on the issues of a refinancing.

Keywords: Financial Condition; Financial Markets; Financing and Loans; Insolvency and Bankruptcy; Financial Strategy; Borrowing and Debt; Corporate Finance; Canada;

Citation:

Baldwin, Carliss Y., and Scott P. Mason. "Massey-Ferguson Ltd.—1980." Harvard Business School Case 282-043, February 1982. (Revised June 1990.)