KTM before the end? Creditor meeting decides on the future of the company!

KTM before the end? Creditor meeting decides on the future of the company!

On Friday, December 20, 2024, the first believer meeting took place in the insolvency proceedings of KTM AG at the regional court in the Innkreis. This decisive date came about, since the law stipulates that such a meeting must take place within three weeks of opening the procedure for renovation procedures. The insolvency administrator reported on the possibilities of continuing the company and the situation of creditors. He announced at 10.12 a.m. that the continuation of the procedure as a renovation procedure with self-administration is advocated, which means that the company is not in the discussion for the time being, such as reported.

In the context of the insolvency proceedings, it is crucial to know that the procedure requires numerous exams and decisions within the first 90 days. The insolvency administrator examines the applicable claims and determines whether a renovation plan can be set up, which covers at least 30 % of the debts in a period of up to two years. In the event of a failure of the plan, bankruptcy is initiated and the assets are used. This was summarized in insolvency law

The possibility that KTM will continue under these conditions give the creditors and employees hope for the time being. The renovation recipient has the responsibility to develop a detailed plan that presents both the interests of creditors and enables the company's continuation. Since the first creditors' meeting has already been carried out successfully, this could be an important step on the way to restoring the financial stability of KTM.