The green light has been given for the continuation of the three KTM companies that have gone bankrupt – but what happens next? The fact is: the motorcycle manufacturer urgently needs fresh money and has brought in the investment bank Citigroup to support it. Bajaj Auto from India, co-owner alongside Stefan Pierer, has also already made a bid.
At 1:20 p.m., the door of the jury room of the regional court in Ried im Innkreis opened for the third and final time this Friday – a little later Gottfried Neumeister, the co-director of KTM AG and Pierer Mobility AG, and KTM. AG restructuring manager Peter arrived at Vogl from the hall where all three reporting meetings had previously taken place.
The appointment for KTM AG lasted 50 minutes, that for KTM Components GmbH 17 minutes and then it took 20 minutes before it became clear that KTM Forschungs & Entwicklung GmbH would also be continued. It is an important first step in the fight for the future of the company from Mattighofen (Upper Austria).
“It’s just the first phase”
“We are really relieved, but it is only the first phase in a 90-day restructuring process,” said Neumeister, who revealed: “We are working hard to ensure this business can continue in the long term.” the concern is to preserve as many jobs as possible, the manager emphasizes. The three companies affected by the bankruptcy employed more than 3,600 employees, and 250 were laid off in early December.
The search for investors is in full swing. “We are conducting discussions at full speed,” says Neumeister: “We are looking for new investors, we are conducting discussions with all creditors to arrive at a sustainable solution and we are having very good and constructive discussions, especially with the banks. .”
The Indian partner has also made a bid
Yesterday, three non-binding bids from investors were submitted to the court, including one from existing partner Bajaj Auto from India. “We expect that many interested parties will come forward in January,” says Neumeister.
Second wave of layoffs is likely to affect “up to 300 employees.”
The threat that around 500 employees will have to leave in early 2025 in the event of a second wave of dismissals appears to have been somewhat averted. Vogl also said Friday that a maximum of 300 would likely need to be separated. “As things are currently developing, it is likely that the restructuring process will require the dismissal of up to 300 employees,” the lawyer said.
Struggle for capital and liquidity
About the search for investors, which could ultimately lead to a new majority shareholder, Vogl says: “We all hope that an investor will come. We hope that this investor will bring sufficient capital and sufficient liquidity to the group to ensure a sustainable restructuring of KTM.”
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.
