On November 12, Pierer Mobility AG announced that a deep restructuring was necessary and that there was a need for liquidity in the order of three figures. Now it is clear: the motorcycle manufacturer no longer has control over it and will submit an application for restructuring on Friday. Thousands of employees are affected.
On Monday afternoon, Pierer Industrie AG announced that it would initiate a European restructuring procedure under the restructuring rules to extend the term of bonds and notes. Less than 24 hours later the next bad news from Mattighofen – this time with even more far-reaching consequences.
KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH filed for bankruptcy on Friday because the necessary interim financing could not be secured in a timely manner – this decision was made by the board of directors of KTM AG.
“Over the past thirty years we have grown into the largest motorcycle manufacturer in Europe. We inspire millions of motorcyclists all over the world with our products. Now we are making a pit stop for the future,” says boss Stefan Pierer.
“We build our motorcycles reliably and robustly for any race, for any surface. Now it’s about making the company robust. Robust for the future,” says Gottfried Neumeister, who has been with the company since September and recently co-leads Pierer Mobility AG with Pierer.
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.
