Insolven wave in Upper Austria: KTM and Epitome GmbH in need!

Insolven wave in Upper Austria: KTM and Epitome GmbH in need!

A dramatic bankruptcy shock shakes the Austrian economy! On December 5, 2024, bankruptcy proceedings were opened for the start-up Epitome GmbH. The company, specializing in dental hygiene products, fought with financial difficulties and has liabilities of 6 million euros, plus subordinate shareholder loans of over 70 million euros. According to a message from the KSV1870 credit protection association, the causes were profound geopolitical and financial policy challenges as well as failure to find necessary investors. 86 employees now fear for their jobs and the company is not planning any continuation. The insolvency administrator Dr. Matthias Schmidt will lead the procedure, and the examination statute will take place on February 11, 2025 in Vienna, such as 5min.at reported .

KTM AG: Renovation procedure opened

at the same time, KTM AG reported bankruptcy. On November 29, a renovation procedure with self -administration was opened at the Ried regional court. The company, which develops and manufactures motorcycles, leads 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. The high stocks and a declining demand, especially in the USA, have led to the current situation. A renovation plan is intended to offer the creditors a quota of 30 % that would be payable within two years of acceptance of the plan. This has been the largest insolvency proceedings in Upper Austria since 2000, as well as KSV reported .

The opening of both procedures shows how tense economic conditions can force companies to their knees. While Epitome GmbH wants to get out completely, KTM plans a possible reorganization. Creditors can register their claims by January 16, 2025 in order to secure a repayment of the liabilities at least. The pressure is enormous - the next steps must take place quickly and precisely to offer the affected employees and creditors a perspective.