Nearly 180 banks and financial institutions are creditors of the bankrupt motorcycle manufacturer KTM. The debt to lenders alone would amount to 1.3 billion euros. Now new capital is needed in the fight for restructuring. This is now being sought worldwide. Citigroup’s use in this is also seen as a tactical maneuver.
Fresh money is needed so that the restructuring and rescue of KTM can succeed – this message, which Pierer Mobility AG published in the form of a broadcast on Tuesday evening, is essentially not surprising.
Given the motorcycle manufacturer’s enormous outstanding debts and the liquidity problems that have led to the promised advances on December wages not being paid, it is logical that business will not continue without new capital. And that is now being sought worldwide.
Discussions with strategic investors and financial investors
Pierer Mobility is currently in discussions with possible strategic investors and financial investors, it is emphasized – both with existing partners and potential new ones. Citigroup Global Markets Europa AG, a renowned investment bank based in the German banking metropolis of Frankfurt am Main, was commissioned to support the investment process.
“You pull out all the stops”
How to evaluate Citigroup’s commitment? “It is a positive step for Pierer Mobility’s shareholders as it hopefully initiates a transparent process to find sensible partners worldwide. You pull out all the stops,” says Florian Beckermann, board member of the Austrian Investor Association, or IVA for short. Moreover, as owner, Stefan Pierer managed to avoid a conflict of interest: “In retrospect, you can’t blame him for only wanting to save himself, Pierer, who has had a huge impact on the brand in recent years.” , As a co-owner, he is in the public eye, who expect him to contribute to the rescue.
KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH, all of which have been involved in restructuring cases since November 29, have already called on a highly international network of banks and financial institutions. Creditors include 180 banks and financial institutions – from Unicredit Bank Austria, Raiffeisen Bank International and Erste Group to Oberbank, the Bank of China, First Commercial Bank, Hewlett Packard Bank International and Denizbank.
Rumors: Full sale possible
The fact that Pierer Mobility AG spoke in its broadcast on Tuesday about a “reorganization of the ownership structure” in view of the search for investors is fueling the rumor mill again. There is speculation as to whether Pierer and his partner Bajaj will eventually sell KTM. Beckermann does not want to participate in this: “I believe that everyone should work together on a solution to secure the survival of KTM and also the employees in the region.”
The fund covers November salaries and Christmas bonuses
The more than 3,650 employees affected by the bankruptcies are waiting for their November salaries and most of their Christmas bonuses, which will be paid by the insolvency fund. December salaries and wages should be transferred as usual, KTM said after the promise of an advance was not kept.
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.
