Financing promises were not kept, employees’ wages could no longer be paid and more than 130 employees are threatened with losing their jobs! The bankruptcy of Vöcklabrucker Metallgiesserei GmbH is the first known bankruptcy directly related to the difficulties at KTM. There is great fear of new bankruptcies.
Because the financial support initially promised by KTM has now not been forthcoming, the wages of more than 100 workers could no longer be transferred! That was the reason that caused Vöcklabrucker Metallgiesserei GmbH to go bankrupt. The company, which has been around since 1955, has officially declared bankruptcy on Friday – and is considered the first known victim of the difficulties at motorcycle manufacturer KTM.
Subsidiary of KTM Components GmbH
Because: Vöcklabrucker Metallgiesserei GmbH, simply called VMG Metall, is a 100 percent subsidiary of KTM Components GmbH, which itself has been in a self-management restructuring procedure since November 29.
A production stop until mid-January is planned
Due to the changed situation at the motorcycle manufacturer, VMG Metall had to interrupt production for a month until mid-January and at the same time the production schedule was halved, according to the Credit Protection Association 1870. It then became clear: bridge financing from KTM, which was initially promised, would not materialize. This left the aluminum processor directly linked to the Innviertler company with no choice but to file for bankruptcy.
Tremors in the immediate company network
The bankruptcy of the former family business, which has been owned solely by Stefan Pierer and KTM since the end of 2022, is causing enormous vibrations in the immediate network of Innviertel residents. The uncertainty as to whether more bankruptcies – for example in the IT sector – could follow in the coming days is growing.
In addition, several suppliers are struggling enormously with disruptions. Besides the restructuring plan, which currently provides for a 30 percent quota for creditors, the only consequences will be the production stop in Mattighofen until the end of February and then the return of motorcycle assembly to a shift operation.
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.
