With the provision of 200 million euros, the Indian partner Bajaj gives the motorcycle manufacturer KTM, which is put in the bankruptcy, in the fight for rescue. Nevertheless, the money requirement among the higher Austrians is still huge. How dramatically developed the situation shows recently published figures from production.
A considerable negative result in the past year ensured that equity will probably be considerably negative at the end of 2024. Because the loss of half of the share capital is ultimately available, Pierer Mobilty AG shouted an extraordinary general meeting before 25 April in Munderfing. Four agenda articles are treated in 16 days during the shareholders’ meeting. They all revolve around how it is possible to pump fresh capital into the parent company of KTM and the 200 million euros available by Pierer partner Bajaj are also reflected in the distribution of the company’s shares …
Until 23 May there is time to transfer 600 million euros
The installation of around 800 million euros is necessary for the motorcycle manufacturer to continue production in Mattighofen and on the other hand to transfer the 600 million euros to the creditors who had approved a rate of 30 percent on 25 February. Until May 23, there is time to transfer the money to the Fiduciary account of KTM-AG-Sanorationwalter Peter Vogl. With Bajaj, 200 million euros in loyalty and the intended edition of shares to shareholders, another 150 million euros must be set up. Still misses 450 million euros, for which you are still intensive discussions with investors.
A look at a presentation shows the effects of the crisis at the end of November, which eventually slid into bankruptcy, which the company wrote and published. The production -malaise is dramatic: 317,000 motorcycles were made less than in 2023 in the previous year. In Mattighofen the bicycle assembly with around 150,000 units, even in India, partner Bajaj had to digest a decrease of 120,000 units.
Even the production of MV-Agusta fell
At Joint Venture partner CFMoto in China, 38,000 motorcycles were produced less than the year before. In Terrassa/Spain, about 6000 gas gas models ran less from the assembly line and MV Agusta speaks of a minus of 3000 units. Since March 2024, the higher Austria have held most of the Italian luxury motorcycle brand, and this 50.1 percent is now being sold back to the previous owner in the course of the bankruptcy procedure.
130,000 motorcycles were too much in stock
According to the provisional key figures, Pierer Mobility AG announced in January, the company sold 292,497 motorcycles to dealers in the previous year. The year before there were 372,511 motorcycles that were sold. When opening bankruptcy, there was an overcap in the warehouse of around 130,000 motorcycles. For this reason, production in Mattighofen was imposed on a forced break – after the last production day 2024 was on December 13, production started on March 17.
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.
