KTM before crucial assembly of creditors: who comes and what happens?

KTM before crucial assembly of creditors: who comes and what happens?

Mattighofen, Österreich - Great excitement at KTM! On December 20, 2024, a decisive meeting will take place in the insolvency court in Ried, which could decide on the future of the motorcycle manufacturer. Thousands of creditors, including banks, suppliers and employees, have the right to take part in this important date. With an expected high participation of over 100 people, the meeting may already be postponed to Monday in order to make room for the large number of creditors. The insolvency administrator will present Details about the current situation and make its recommendation as to whether the company can be continued for the time being or not.

high debts and impending defaults in payment

KTM is under immense pressure: The current debts amount to unsecured liabilities of almost 2 billion euros, including 1.3 billion in banks, while the tax office and the Austrian health insurance fund are also affected by 18.6 million euros or 15.1 million euros, such as Kleine Zeitung reported. However, employees can hope for a soon-to-be paying off their December wages: the salaries should be paid before Christmas, specifically around December 18 and 19. A total of 75 percent of the net wage are paid out to relieve the tense situation of the employees.

But the situation is complicated. The first creditor meeting in January will decide whether the creditors can bring in their open claims and in February the decision is due whether a renovation of 30 percent of the debts is possible. Observer believes that continuing the company would be an important signal for the creditors, especially since production has been still standing for a week. Nevertheless, there could be hope that, despite the difficult financial situation, KTM takes further steps to stabilize.