Is there a chance for KTM to win the battle for survival? Three weeks after the declaration of bankruptcy, the first reporting meetings in the restructuring procedure of the motorcycle manufacturer’s three companies will take place today, Friday. Much depends on the impressions of the reorganization administrators about whether the judge gives the thumbs up for continuation.
It is a marathon of appointments for the insolvency judge, for the representatives of the creditors and for the restructuring administrators: today, Friday, the first reporting meetings will take place every two hours for the three companies that have gone into bankruptcy: first the appointment for KTM AG , then that of KTM Components GmbH and then that of KTM Forschungs und Entwicklung GmbH.
The first appointment is the most important: Because only if the bankruptcy judge gives KTM AG a thumbs up and thus allows the motorcycle manufacturer to continue, it will also continue with the directly affiliated companies, which also became restructuring cases.
Is this a major gift or is there still hope that the company will continue to exist in some form? Four days before Christmas, the first fateful day for KTM will bring much clarity. And even if the vote on the restructuring plan is still two months away, creditors will receive their first answers behind closed doors.
Renovation managers report on the past few weeks
How do the lawyers view the situation? How do you view management decisions? Are you on schedule to complete the renovation? Can self-governance continue or should it be taken out of the corporation? The reports from restructuring managers Peter Vogl (KTM AG), Robert Tremel (KTM Components GmbH) and Franz Mitterbauer (KTM Forschungs & Entwicklung GmbH) are eagerly awaited.
Pierer is not in court
Who’s there from KTM? Gottfried Neumeister has joined Pierer Mobility Management and has been working with Stefan Pierer since the beginning of September. Pierer himself is not here today. There is also no obligation for KTM managers to attend the meetings.
Citigroup’s efforts create space and trust between banks
The fact is: the announcement on Tuesday evening that the investment bank Citigroup was engaged to support discussions with existing and potential new investors gave the company a lot of breathing space. Especially for the banks and institutions that already provide financing, it seems credible that liquidity can be secured by bringing in new partners – or possibly even a new owner. Then it would be possible to carry out the renovation together and hopefully save as many jobs as possible in the region in and around Mattighofen.
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.
