Two-wheelers Motorcycle manufacturer KTM files for insolvency proceedings

The Austrian company Pierer Mobility has filed for insolvency proceedings for its subsidiary KTM at the competent regional court in Ried im Innkreis. This was stated by a company spokesperson on Friday at the request of the news agency AWP.

The motorcycle manufacturer, which is in severe financial difficulties, is thus taking refuge in creditor protection.

KTM is applying to the court for debtor-in-possession restructuring proceedings. The spokeswoman was unable to say how long it would take for the regional court to approve the application. According to the Austrian creditor protection organization Creditreform, the proceedings concern KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH.

According to Creditreform, the uncovered claims amount to 2.3 billion euros. This is offset by assets of 352 million euros. Around 2,500 creditors and 3,500 employees are affected by the insolvency, said Creditreform Managing Director Gerhard Weinhofer. Should the creditors agree to the restructuring, they could expect a quota of 30 percent of their claims.

The company, which belongs to the Pierer Group and is one of the largest motorcycle manufacturers in Europe, is struggling with high inventories and low demand.

SDA