It was a Domino effect: a month and a half after the bankruptcy of the three KTM companies, two IT companies were also employed by the motorcycle manufacturer. This was then received for the operational companies of Avocodo GmbH and Pierer e-commerce GmbH. KTM uses the situation to close structures. This helps to save costs.
The first working day after Easter was all over the revolution at the KTM group: in the evening Pierer Mobility AG announced that the agenda of the extraordinary general meeting on Friday in Munderfing was halved. Neither the conversion of Bajaj’s 200 million euros -loan in equity is initially on the agenda, nor the decision that new shares of Pierer Mobility must be spent on existing shareholders with the equivalent of 150 million euros. This was announced in the course of an ad hoc message that the capital market was informed.
Avocodo closure approved on Tuesday
Something else happened on the same day in the field of KTM on the same day. The closure of avocodo GmbH to the regional court in Linz was approved on Tuesday. The IT company of the state capital, part of the group of the motorcycle manufacturer since the end of 2018, still has to be renovated, but the employees will continue. “99% of avocodo GmbH employees are offered a job of their qualifications in the group of companies,” says Pierer Mobility.
Avocodo and Pierer E-commerce have been Insolvent since 7 January
Just like with the Pierer e-commerce GmbH in Munderfing, which has been closed since the end of March, which, like avocodo on January 7, has officially become a renovation case, the tasks are now taken over by KTM. Bundling people, form synergies, lower the costs, are called the keywords here. There was also a takeover bid for the employees of the Pierer e-commerce. How much have this accepted, the group is silent. Avocodo still had 86 employees, the Pierer e-commerce 25 at the beginning of March.
Already during the extraordinary general meeting at the end of January, Pierer Mobility and KTM CEO Gottfried Neumeister spoke about wanting to simplify the structures in the future. This process has started completely and the closure of the two IT companies is also made visible.
Renamation -receiver locates “positive signals”
On the other hand, negotiations with potential investors needed are still underway behind closed doors to manage the approximately 600 million euros for the quota of 30 percent to the creditors and the costs for the renovation process.
Even if the rumor grows again since Tuesday evening, Pierer Mobility emphasizes that “the board is currently no longer on failure of the investor process”. Renovation -receiver Peter Vogl also speaks of “corresponding positive signals” “that the 600 million euros is on time”. The amount of Vogl must be received before 23 May.
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.
