It is emphasized that they are not over-indebted and do not want to reduce claims, but only extend payment terms – but the measure is still shocking: Pierer Industrie AG, which in turn also includes Pierer Mobility AG, including motorcycle manufacturer KTM and Pankl AG initiated a European restructuring procedure under the Restructuring Regulations.
On November 12, Pierer Mobility AG announced late in the evening that a deep restructuring of the company was necessary and that KTM AG had a liquidity requirement of a three-digit million amount. In the days that followed, events came to a head: an agreement was reached on a production stop for January and February 2025, the dismissal of 300 employees and a salary reduction for all employees – i.e. internal reduction of working hours in Mattighofen. In the background, negotiations are in full swing to secure financing…
Goal: Guarantee group stability
But Monday afternoon’s message was extremely alarming. Pierer Industrie AG, which also includes Pierer Mobility AG and Pankl AG, announced that it had decided to initiate a European restructuring procedure in accordance with the restructuring rules. Reason: You want to guarantee the stability of the group.
Bankruptcies must be avoided
The restructuring procedure according to the restructuring scheme is intended to prevent bankruptcy. In this specific case, Pierer Industrie AG would like to extend the dates for the repayment of the full capital amount of two bonds (total: 115 million euros) and two promissory notes (total: 132.5 million euros).
The interest is paid as agreed, it is said. It is expressly emphasized that Pierer Industrie AG is not over-indebted.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
