Fight for salvation – KTM bankruptcy: 55 days between tears and triumph

It was bad news that very few people would have thought possible a few days earlier, even though serious problems had already come to light: On November 29, restructuring procedures were opened through KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklung GmbH. According to the company, the debt amounts to almost two billion euros.

The battle to save the motorcycle manufacturer from Mattighofen has now lasted more than seven weeks and the audit meetings are scheduled for Friday as part of the restructuring process. The past 55 days have been a rollercoaster of emotions – between tears and triumph. Read what’s happened so far here:

• Radical staff reductions: A few days after the bankruptcy was declared, 250 of the approximately 3,600 employees were dismissed in early December. The end was unprepared for most people, left livelihoods shaky, created uncertainty and tears. About 270 more employees have recently been laid off. There was previously talk of a maximum of 500 employees for the second wave of layoffs, but this number was significantly reduced.

• The plug was pulled from production: Motorcycles were last produced in Mattighofen on December 13 and the assembly lines have been at a standstill since then. The traditional Christmas holidays started a week earlier than usual. In any case, production will be suspended until the end of February to reduce extremely high inventory levels – there would be 130,000 bicycles in stock if bankruptcy is declared. There is talk of an extension of the shutdown; it currently looks like mid-March.
• The long wait for money: The advance on salaries and wages in December that was promised before the bankruptcy was declared came to nothing, KTM is now making payments on the usual dates. The December salaries for the employees were issued at the end of December and the workers received their December wages in mid-January. The bankruptcy compensation fund recently transferred outstanding November salaries and wages, as well as most of the Christmas bonus. Cost: approximately 20 million euros.

• Struggle for revenue: They want to get rid of most of MV Agusta, which they have owned since March 2024. Apparently it is not that simple: negotiations on the sale of the 51 percent stake in the luxury brand Italo are still ongoing. The motorcycle manufacturer’s acquisition of 49% of Pierer Immoreal GmbH in Wels has already been returned to the previous owner, as restructuring manager Peter Vogl confirmed. This brought KTM AG 35 million euros into its coffers.

• Subsequent bankruptcies caused: The crisis at KTM also affects other companies. On December 13, bankruptcy proceedings were opened against Vöcklabrucker Metallgiesserei GmbH. VMG Metall is a subsidiary of KTM Components GmbH, the curator is looking for a buyer. At the beginning of January, restructuring procedures were also opened for Avocodo GmbH and Pierer E-Commerce GmbH, two companies from the KTM group. On January 20, the first supplier had to file for bankruptcy: RJ – Werkzeugbau GmbH from Mattighofen is affected, which according to KSV1870 has debts of approximately 1.2 million euros.

• The most emotional triumph in history: KTM took part in the Dakar Rally with just three pilots, which is considered the toughest multi-day motorcycle race in the world. In the end, Daniel Sanders took the win for the Mattighofen team – a very important sign of life at a time when there is a heated debate about whether to withdraw from the racing series to save money. The statement on its own social media platforms was clear and distinct: “Here to stay,” KTM said and published a celebratory photo of Sanders.

What’s next? The following important decisions will take place in the Innviertel: On Friday, January 24, the exam meetings for the three KTM companies will take place at the regional court in Ried im Innkreis. The day will provide clarity about the current level of creditors’ claims and therefore the level of debts. In addition, KTM-AG restructuring manager Peter Vogl will also report to the court and creditors on how the company plans to finance the restructuring.

In any case, something more robust is needed here than in December, when there were three interested parties (Bajaj, CFMoto and FountainVest). At the extraordinary general meeting on Monday, January 27, the board of directors wants to obtain approval to implement a capital increase.