Striking News: 20 Investors Eyeing a Spot in Troubled KTM
Striking News: 20 Investors Eyeing a Spot in Troubled KTM
KTM, the Austrian motorcycle manufacturer, is making headlines for a positive reason amidst its insolvency proceedings. On a recent Friday, the company cleared another hurdle at the regional court in Ried during the first creditors' meeting. Insolvency administrator Peter Vogl shared an optimistic outlook, stating, "We're on the right track."
Vogl reported that KTM has around 1,200 creditors with an approximate debt totaling €2.2 billion. The company also has €12.7 million in unpaid wages. In the wake of these challenges, KTM's CEO Stefan Pierer will step down from both the company and its parent company Pierer Mobility, retaining only the title of managing director. In his place, Gottfried Neumeister, the former CEO, will take over operational management of both entities.
Vogl revealed that around 20 investors have expressed interest in acquiring a stake in KTM, with several submitting concrete offers. However, due to legal and contractual reasons, he cannot disclose more details about these proposals.
Amidst these developments, there's a sense of optimism about KTM's future. Vogl noted, "It is now more likely than it was in December that an investor will secure KTM's future." The goal is to achieve a settlement rate of approximately 30% within two years. This ambitious plan will be put to a vote by the creditors in the coming month.
In light of the proposed restructuring plan, KTM aims to restart motorcycle production on March 17, after a temporary halt due to an inventory reduction. The company currently employs 2,000 people, down from 2,500 before filing for insolvency, primarily due to a general decline in demand, high inventory levels, and increasing capital requirements.
Sources:
- AKV EUROPA/Alpine Creditors Association[1]
- Seven-time F1 champion Lewis Hamilton[2]
- Reuters[3]
- Austrian Press Agency (APA)[4]
- Bloomberg[5]
KTM, despite facing financial challenges with around 1,200 creditors and a €2.2 billion debt, has managed to clear a hurdle in its insolvency proceedings at the regional court in Ried. The Austrian motorcycle manufacturer, renowned as KTM, is now optimistic about its future, with insolvency administrator Peter Vogl stating, "It is now more likely than it was in December that an investor will secure KTM's future."