Investors should line up
Despite bankruptcy: motorcycle brand KTM can probably be saved
January 24, 2025 – 6:09 p.mReading time: 2 minutes
The restructuring of the insolvent motorcycle manufacturer KTM has overcome an important hurdle. According to the insolvency administrator, there is great interest from potential investors.
The restructuring of the insolvent motorcycle manufacturer KTM has overcome an important hurdle. The company is allowed to continue to restructure itself under self-management, as reported by “n-tv”, among others. This decision was made on Friday at the Ried regional court. Insolvency administrator Peter Vogl was optimistic about the further course of the proceedings.
According to the insolvency administrator, 1,200 creditors have so far filed claims amounting to around 2.2 billion euros. In addition, there are 12.7 million euros in outstanding salary payments. In this context, Vogl announced personnel changes in company management.
CEO Stefan Pierer will retire from both KTM and the parent company Pierer Mobility and will only act as one of the managing directors in the future. He will be replaced by the current CEO Gottfried Neumeister, who will take over operational management of both companies.
There is obviously great investor interest in rescuing KTM. According to Vogl, 20 potential donors are interested in joining. Some of them have already submitted concrete offers. He did not give any details because the investor process is strictly confidential for legal and contractual reasons.
However, before the start of the audit meeting, Vogl explained to media representatives that the chances of a successful restructuring had increased: “But it is considered likely, more likely than it was in December, that an investor will secure the future of KTM.”
The restructuring concept provides for the repayment of creditors' claims at a rate of around 30 percent. This amount should be paid within two years. However, whether the plan can be implemented depends on the approval of creditors, who will vote on it in a month. If they reject the proposal, the restructuring could fail.
While KTM continues to struggle with financial challenges, production at the Mattighofen plant is currently at a standstill. However, the company plans to resume manufacturing on March 17. KTM currently employs 2,000 people, compared to 2,500 at the time of the bankruptcy filing. Declining demand, high inventories and a growing need for borrowed capital were cited as the causes of the economic problems.