Insolvency drama at KTM: 400 dismissals and uncertain future!

Insolvency drama at KTM: 400 dismissals and uncertain future!

In a dramatic turning point, the Austrian motorcycle manufacturer KTM, which is currently in bankruptcy proceedings. On December 27th, the decisive day to submit the restructuring plan of Pierer Industrie AG at the Wels Regional Court, the employees are pursuing the developments. According to the spokesman for the court, Wolfgang Brandmair, the documents must be submitted until midnight. In the past few weeks, the assembly of creditors has been a central event in which a first assessment of the future of the company was made. The employees are currently dissatisfied with the situation - a sign in front of the production facility clearly shows: "Merry Christmas, Stefan" - and speaks for himself as [today.at].

KTM has accumulated debts of around 1.8 billion euros, including repayment obligations of two bonds and promissory note loans, which are almost 250 million euros. The workforce fears that 400 employees will now be affected by the originally planned 500 dismissals in the renovation phase, with 250 dismissals have already been issued. In addition, the production stop for January and February is imminent to reduce the high stock. At the moment, many employees are still waiting for their November and December salaries, while the financial market supervision is examining compliance with ad hoc obligations, as the [KURIER] reported.

planned reduction in the number of employees

The development of the procedure is also burdened by the creditor rank at the Ried regional court, which failed to do so. By January 16, creditors have time to register their claims, whose number is now estimated at around 3,000. According to the renovation recipient, it is recommended that the company can be continued by the end of February, since the debtor's self -administration has been confirmed. Observers expected a continuation of the company, which could initially calm the employees, but the uncertainty remains. The renovation plan provides for a repayment of 30 percent within two years for creditors, while the financial means to support the renovation of external investors should be obtained.

observer emphasized that without fresh capital, a successful renovation of KTM AG, as well as its subsidiaries KTM Components GmbH and KTM Research & Development GmbH will be impossible. Practicable investors have already signaled interest, but it remains to be seen whether agreement can be reached in good time. In view of the 130,000 motorcycles that are currently in the camp and sometimes do not correspond to the new exhaust gas standards, the company must act quickly to avert impending bankruptcy.