The restructuring administrators have received an initial overview of the situation at the bankrupt motorcycle manufacturer KTM. More than 3,600 employees will be informed about the next steps on Wednesday. And politics is not standing still either: there will be a round table on Thursday and the first support measures will be prepared.
Insolvency proceedings were opened for three motorcycle manufacturer KTM companies on Friday. Insolvency experts from creditor protection associations, as well as trade union representatives, shake their heads at the enormous mountain of debt and wonder what went so wrong here.
“The owner is challenged”
“The dimension surprised us all. It must become clear how such a robust company can go bankrupt within a few months,” said Markus Achleitner, councilor for economy of Upper Austria. The ÖVP politician said on Monday at a press conference in view of the restructuring plan and the necessary financing, to which Stefan Pierer will also have to contribute: “The owner is challenged. The court will also investigate to what extent he should participate in the restructuring of the company.”
40 million euros in salaries open
KTM owed the employees their December salary and the Christmas bonus; these are paid out through the bankruptcy compensation fund. According to Achleitner, this amount is around 40 million euros. At company meetings that started Monday, the big topic was the powers of attorney needed to make claims against the insolvency fund.
As a result of the insolvency proceedings, there will be staff reductions. It is unclear exactly how high this will be. Shortly after the opening of bankruptcy proceedings on Friday afternoon, it was announced that 500 jobs would be cut by the end of the year. The roundtable discussion initiated by the state of Upper Austria with the labor market service, the Chamber of Labor and the Chamber of Commerce will take place on Thursday. It won’t just be about KTM, but also about the suppliers. The first measures are in the pipeline; we are also talking about bridging financing for suppliers.
There are currently 3,000 vacancies open in the Innviertel
How do you want to support the people who lose their jobs? Through the so-called job hub, a project with the AMS, employees who lose their jobs must be matched to suitable companies again. There are currently 3,000 vacancies in the Innviertel. Bankruptcy foundations should be set up for those who cannot immediately find a job again. These will probably not start until February.
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.
