Last Friday, the first creditors’ meeting of KTM AG was held in an Austrian court. The insolvency administrator, Peter Vogl, considers that the restructuring procedures with self-administration should continue, believing the company has the conditions to remain operational.
According to AKV, Peter Vogl reported that the self-administrator has already initiated a series of reorganization measures at various levels. In any case, external investors will be needed, with three interested parties and the process entrusted to Citygroup Global Markets Europe AG.
Here is the list of measures being taken or planned:
- The sale of shares in Pierer Immoreal GmbH has been announced in the bulletin and put up for sale
- Payments to subsidiaries of the KTM Group that are not essential to operations have been suspended. Consequently, several subsequent insolvencies of group companies are expected. KTM F&H and KTM Components, already insolvent, are essential for the continuity of operations and are being supported by KTM AG through the acquisition of goods and services
- A withdrawal from MotoGP Moto3/Moto2 is planned to reduce costs
- Possibilities for total or partial relocation of production are being studied to reduce production costs
- Production will be halted until the restructuring plan is approved
- Clearance sales at dealerships