The Austrian motorcycle manufacturer, KTM, was declared free of charge together with two of its subsidiary companies, KTM Components GmbH and KTM Forschungs und Entwicklungs GmbH. The entity filed for bankruptcy and now the numbers of the thing that have been the biggest failure this year in the alpine republic.
According to AKV, the creditor protection organization, KTM AG’s debts reached the 1,800 million euros. Regarding the liabilities of the three companies, it is worth 2.9 billion euroswith about 2,500 lenders, according to data published by the specialized portal ‘Motorsport.com’.
More specifically, Must be KTM AG 1,300 euros in various Austrian banks and 365 million euros to suppliers. Furthermore, we must add to this this bankruptcy situation affecting more than 3,600 workers whose salaries are pending payment and are estimated to cost 40 million euros.
Even at all times Pierer Mobility AGKTM’s holding company, spoke of its financial needs as being in the “high three-digit range of millions of euros”, financial experts assured that in reality The number has risen to a billion.
He Austrian Prime Minister of Labor and EconomyMartin Kocher, presented himself surprised by the situation of the company. Speaking on ORF (Austrian public radio and television), require clear answers of KTM “about How was it possible to go so quickly from the optimal situation of profits and good prospects to a reorganization procedure“.
And as he explained Johannes Kopf, member of the board of the Austrian public employment service, KTM in the spring “is still payment of benefits last yearin summer the owner buy another companyand now declared insolvency”.
The company You must negotiate with all your creditors the reorganization plan they decide to follow. To find out if it is accepted, you have to wait 90 days, that is, at the end of February Know what direction the entity will take.
What is known is the production plant located in Mattighofen cease its activity in January and February and will also apply a short term model of 30 hours. Also, that has also been confirmed between now and the end of the year another 500 jobs will be cut.
From the Austrian government They are willing to “help and support the location”as Thomas Stelzer, the governor of Upper Austria, said, but they ensure that “EU state aid law and insolvency law are currently de facto abrogates responsibility”.
The KTM case is not the only one of companies in the automotive sector going through tough times. In Lower Austria, the supplier Schaeffler was forced to close its plant Berndorf to move to Slovakia and Romania. A less serious case but still represents a challenge for the Austrian Public Employment Service.
Source: La Verdad
I’m Rose Herman and I work as an author for Today Times Live. My expertise lies in writing about sports, a passion of mine that has been with me since childhood. As part of my job, I provide comprehensive coverage on everything from football to tennis to golf.
