In order for KTM to have a future and for the restructuring to be successful, fresh capital is needed – that much has long been clear about the initial situation at the bankrupt motorcycle manufacturer. Many people are less aware of how urgent time is. Creditors and the judge must be convinced during the examination meeting on January 24 – also so that the sequel gets the green light again.
Video calls, telephone conversations, personal meetings – the past few weeks have already produced an intensive marathon of appointments for those responsible at KTM and also for the restructuring managers with whom the motorcycle manufacturer’s managers have to coordinate.
90 days from the opening of the bankruptcy until the vote on the restructuring plan
The tight time corset breathes down everyone’s neck. Because: Overall, the self-governance restructuring process involving KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH is limited to 90 days.
90 days that decide whether there is still a future for the leading company in Mattighofen (Upper Austria) – and if so, what that future looks like. One thing is clear: Pierer Mobility AG needs fresh money and has therefore instructed investment bank Citibank to reorganize its ownership structure, as the company announced late in the evening of December 17.
It remains to be seen what influence Stefan Pierer will have in the future
It remains to be seen what role Stefan Pierer will play after this reorganization. You increasingly hear that the entrepreneur who has built and shaped the brand since 1991 is in danger of losing his influence. But: will it really happen? Much will depend on what the total package will ultimately look like and which investors will be on board and in what form.
During the reporting meeting on December 20, restructuring manager Peter Vogl of KTM-AG presented three non-binding offers from potential donors to the regional court in Ried im Innkreis, one of which came from Pierer partner Bajaj of India. CFMoto from China, with which we have had a joint venture since 2018 in which sales activities are shared and parts of production are carried out in Asia, is apparently also very interested. In addition, investment company FountainVest from Hong Kong is showing interest.
“We are working hard to ensure that this business can continue in the long term,” said Gottfried Neumeister, co-boss of Pierer Mobility and KTM AG, after the three court hearings on December 20. Regarding the search for investors, he said that more interested parties are expected in January.
Liquidity assured at least until January 19
The fact is: there is not much time left to take the discussions to a higher level and make them concrete. Much more clarity is needed by January 24, because the creditors want to know concrete details about the implementation of the restructuring plan during the auditors’ meeting. The curator is also investigating the situation and will decide again whether it can continue. Liquidity is said to be assured at least until calendar week three. This ends on January 19.
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.
