Italian aircraft manufacturer Piaggio Aerospace (Genoa) declared insolvency on November 22 and applied to the Ministry of Economic Development to enter into extraordinary administration proceedings.

The manufacturer said that goals outlined in a restructuring plan approved in 2017 had not materialised and as such the company had become financially unsustainable.

Since 2015, Piaggio Aerospace has been owned by Abu Dhabi sovereign wealth fund Mubadala. The last year's restructuring plan included, among others, a capital injection of EUR255 million euros (USD290 million) by the Emirati owner.

The manufacturer is currently producing two aircraft: Piaggio Avanti P.180 EVO turboprop and P.1HH HammerHead military drone. In 2017, Piaggio announced its plans to sell the P.180 business to Chinese state-backed investment firm PAC.

The Italian Prime Minister Giuseppe Conte said that the government was prepared to step in to protect jobs at Piaggio Aerospace. Short of disclosing any possible actions, he added that the cabinet would meet shortly to discuss its further steps in this matter.