KTM’s continuation gets the green light! Four days before Christmas, the bankrupt motorcycle manufacturer achieved an important stage victory at the regional court in Ried im Innkreis. We also learned that projected job losses for early 2025 will be lower than planned. And that wasn’t the only good news for the employees…
The reporting meeting for KTM AG lasted 50 minutes on Friday morning at the regional court in Ried im Innkreis, after which it was clear: the motorcycle manufacturer from Mattighofen (Upper Austria) could continue to operate. Important news for the more than 3,600 employees who work at the three companies that have mutated in restructuring cases.
Fewer than 300 employees are expected to leave by early 2025
At the same time as the first court hearing, it also emerged that the job losses planned for January will now be considerably smaller than originally planned. Recently there was talk of the departure of 500, even 550 employees. However, as of Friday, it has been said that fewer than 300 workers are likely to lose their jobs in January.
At the beginning of December, 250 employees were laid off
The uncertainty about who will be affected remains high, but it is at least a first glimmer of hope after the past few weeks, in which the negative news had become overwhelming and there were even fears that KTM would go bankrupt. A few days after the bankruptcy was declared, 250 employees were dismissed. Production has been halted for a week and will not resume until March.
What’s next for the workforce, some of whom also find themselves in an information vacuum? Although the message that the wave of layoffs should be milder is a ray of hope, the transfer of the outstanding November salary and the majority of the Christmas bonus through the insolvency fund is getting closer.
Because: The insolvency law department of the Upper Austrian Labor Chamber, which received KTM’s wage data on Monday afternoon, was able to register approximately 3,500 employee claims with the court on Thursday afternoon and simultaneously submit an application to IEF-Service GmbH.
Information letters were sent to employees on Friday
Now the restructuring administrators must review these applications before the transfers can be released. It will probably be clear to employees before Christmas how much they will receive from the Bankruptcy Fund. The Chamber of Labor sent the information letters with the data on Friday.
Something also needs to be done quickly when it comes to salaries in December. KTM lacked the liquidity for the promised advance. But now the picture here has changed. However, it is not yet known exactly when the transfer will take place.
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.