In recent days, the rumors have become increasingly intense, and since Friday afternoon it has also been confirmed by the Wels Regional Court: After three KTM companies have already been involved in a restructuring case since the end of November, another company of the motorcycle manufacturer has now gone bankrupt . Vöcklabrucker Metallgiesserei GmbH is affected.
“Strong in shape, made from one piece” is the slogan of Vöcklabrucker Metallgiesserei GmbH, which can be read in bold letters on the company’s website. The company has a long history and has been producing cast aluminum parts since 1955: motorcycle swing arms, wheel hubs, gearbox housings, insulation covers and the like.
The homepage lists customers such as Rosenbauer, Siemens and BMW, but KTM is also mentioned. But at the motorcycle manufacturer, which went bankrupt at the end of November, there is much more than just a customer-supplier relationship. VMG Metall is a 100 percent subsidiary of KTM Components GmbH, through which a self-managed restructuring procedure was opened on November 29.
Bankruptcy proceedings opened on Friday
VMG Metall has also been bankrupt since Friday. Bankruptcy proceedings were opened against the company. In 2023, the company achieved a turnover of approximately 33.6 million euros and had almost 160 employees. Only 134 employees are named in the bankruptcy filing. According to the Credit Protection Association 1870, the debts amount to approximately 3.5 million euros.
Advances were promised
According to KSV1870, until recently, VMG Metall management assumed that KTM AG would provide the company with the necessary liquidity through appropriate advances to cover operating costs during the phase of the planned production stop. This was apparently initially promised by the board of directors of KTM AG before the bankruptcy was declared, but could no longer be implemented.
A family business until the end of 2022
The company was a family business until the end of December 2022, after which it was taken over by Stefan Pierer’s network due to financial problems. Pierer had plans for VMG; they wanted to turn the company into a center of excellence within the group. The company has been bankrupt since Friday December 13.
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.
