KTM in financial emergency: bankruptcy meets 3,600 employees in Mattighofen

KTM in financial emergency: bankruptcy meets 3,600 employees in Mattighofen

The renowned motorcycle manufacturer KTM from Upper Austria has submitted an application for bankruptcy at the Ried regional court, which is a significant financial setback for the industry. The application was made on Friday and the numbers are alarming: the debts of KTM AG amount to a total of 1.8 billion euros. These developments also affect the subsidiaries KTM Components GmbH and KTM F&E GmbH, which have also registered bankruptcy. The total liabilities are estimated at almost 3 billion euros, which endangers more than 3,600 jobs.

The cause of bankruptcy is seen in severely increased operating costs and in the current economic recession. KTM faces a dramatic decline in demand, which led to an intolerable inventory of around 1 billion euros. According to estimates, around 130,000 motorcycles are currently on the Halde. This already led to production changes, including a change to one-shift operation and a planned production stop for January and February.

financial challenges

The sharpness of the situation is reinforced by the bank debt of around 1.3 billion euros. In the worst case, the liquidation could increase the liabilities to 2.1 billion euros. A renovation plan stipulates that the creditors are offered a repayment of 30 percent within two years. The first creditor meeting is convened for January 24, while the vote on the renovation plan is to take place on February 25th.

The economic situation also has an impact on the nearby Mattighofen, where the head of the Oberösterreich Labor Market Service, Iris Schmidt, emphasizes the difficult consequences of the company's bankruptcy. Numerous jobs could be influenced in an industrially embossed country and Upper Austria, because it is generally assumed that two other jobs in supporting sectors fall on an industrial job. There are considerations for creating foundation models to support the region.

Governor Thomas Stelzer announced a round table in which the country, the AMS, the Chamber of Labor and the Chamber of Commerce will work together. The appointment is still pending, but this initiative shows the seriousness with which the government reacts to the crisis. Stelzer emphasizes the need to offer the affected employees and their families perspectives, especially in the run -up to Christmas.

The political reaction to bankruptcy is also clear. SPÖ boss Andreas Babler has criticized that despite the increasing debt burden, dividends were distributed to shareholders, including pierers. Similar accusations come from FPÖ economist Axel Kassegger, who appeals to the company's failure in the context of political party donations to the ÖVP. These incidents give the impression of systematic mismanagement within the company and professional policy.