The situation with the Austrian motorcycle manufacturer KTM remains turbulent. Even after the withdrawal from the top management announced by Stefan Pierer, the internationally known company, which is currently trying to get out of debt through legal restructuring procedures, is trying to get turbulent days.
The current commotion is caused by an international fund described by observers as a ‘typical grasshopper’ and that in the background tries to influence the company with the help of questionable methods.
According to research by “Krone”, the American Hedge Fund Whitebox tries to buy their promesses against KTM since the bankruptcy was pronounced. With a substantial discount. In addition, Whitebox announces resistance against the KTM restructuring plan. Now the moment when the interest of international investors in investing and saving the KTM Group has really gained momentum, as was announced on Friday during the court session. Whitebox tries to make an alternative plan attractive to creditors.
Austrian experts in the field of insolvency law explain to the “Krone” that this plan is “at its best half -baking” and “very likely cannot be performed for legal reasons”.
“Great worries”
In fact, the “Krone” has the written report of KTM restructuring manager Peter Vogl, which the business lawyer sent to court last week. It says:
“The White Box offer must be compared with the range of other investors or their impact on a possible quota and are assessed accordingly prior to the meeting of the restructuring plan. The provisions of the Austrian insolvency law (including equal treatment, creditors) in the White Box offer have probably not yet been taken into account. ”
The “Kroon” asked the restructuring manager, who confirmed his written report to the court and added: “It is my task to investigate such offers for the court and the creditors. I am actually very concerned that the White Box proposal can be implemented in a restructuring procedure according to Austrian law. These worries were not removed during a recent meeting with Whitebox. “
Storm in a tea cup?
The lawyers interviewed by the “krone” also point out that the announced white-box resistance could be a storm in a glass of water: according to Austrian law, creditors who buy claims after the opening of the insolvency should have no control over the judicial restructuring. That is why, according to the legal experts, Whitebox will probably not be allowed to vote with such requirements during the decisive hearing of the court on 25 February.
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.