On Friday, November 29th, KTM AG will submit an application for restructuring proceedings with self-administration. The parent company Pierer Mobility announced this on Tuesday afternoon. The subsidiaries KTM Components and KTM R&E will also file for bankruptcy. There is also a works meeting at KTM in the afternoon.
This means that KTM and its boss Stefan Pierer have not managed to secure the necessary cash injection. As reported, there were discussions with core shareholders and creditors about a three-digit million amount. The company reports: “KTM AG’s financing needs currently amount to a high three-digit million amount. Management is now not assuming that it will be possible to secure the necessary interim financing in a timely manner.”
Pierer says: “We have grown into Europe’s largest motorcycle manufacturer over the last three decades. We inspire millions of motorcyclists around the world with our products. Now we’re making a pit stop for the future. The KTM brand is my life’s work and I’m fighting for it.”
The restructuring process with self-administration (instead of without) provides the opportunity to continue to manage the assets under supervision and to restructure the KTM Group independently, it is said. All other subsidiaries, in particular all sales companies, are not affected by this.
Massive loss this year
The aim of the procedure is to agree a restructuring plan with the creditors within 90 days. “By resizing the group, the aim is not only to secure the existence of the KTM Group, but also to create the basis for coming out of the process stronger,” says Pierer Mobility.
Production is to be massively reduced in order to reduce overfull warehouses. “This will result in a reduction in operating performance at the Austrian locations totaling more than one billion euros in 2025 and 2026,” it says.
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Image: VOLKER WEIHBOLD
Source: Nachrichten
