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Wave of insolvencies in Upper Austria: KTM and epitome GmbH in distress!
On December 5, 2024, bankruptcy filings were filed for epitome GmbH and KTM AG due to financial issues and market conditions.
Wave of insolvencies in Upper Austria: KTM and epitome GmbH in distress!
A dramatic bankruptcy shock shakes the Austrian economy! On December 5, 2024, bankruptcy proceedings were opened for the start-up epitome GmbH. The company, which specializes in dental hygiene products, struggled with financial difficulties and has liabilities of 6 million euros, plus subordinated shareholder loans of over 70 million euros. According to a statement from the credit protection association KSV1870, the causes were profound geopolitical and financial challenges as well as the failure to find necessary investors. 86 employees are now worried about their jobs and the company has no plans to continue. The insolvency administrator Dr. Matthias Schmidt will lead the procedure and the examination meeting will take place on February 11, 2025 in Vienna 5min.at reported.
KTM AG: Reorganization proceedings opened
At the same time, KTM AG filed for bankruptcy. On November 29th, restructuring proceedings with self-administration were opened at the Ried regional court. The company, which develops and manufactures motorcycles, carries massive liabilities of around 1.824 billion euros and around 2.150 billion euros in the event of liquidation. A total of 2,380 employees are affected, including 986 employees and 1,181 workers. High inventories and declining demand, particularly in the USA, have led to the current situation. A restructuring plan should offer creditors a quota of 30%, which would be payable within two years from the adoption of the plan. This represents the largest insolvency proceedings in Upper Austria since 2000, as well KSV reported.
The opening of both proceedings shows how tense economic conditions can bring companies to their knees. While Epitome GmbH wants to exit completely, KTM is planning a possible reorganization. Creditors can register their claims until January 16, 2025 to ensure at least partial repayment of the liabilities. The pressure is enormous - the next steps must be taken quickly and precisely in order to offer the affected employees and creditors a perspective.