On Friday, the first creditors’ meeting of KTM AG took place in a court in Ried, Austria. The agenda focused on the company’s restructuring process, which began at the end of November.
According to SPEEDWEEK.com, the second wave of layoffs will be smaller than initially planned – of the 500 jobs originally expected to be cut, only 300 employees will lose their jobs in addition to the 550 already dismissed throughout this year. The majority of the layoffs will affect employees at the headquarters in Mattighofen.
On the other hand, it was confirmed that there is enough short-term liquidity for KTM AG to continue operations. However, it will not be sufficient to pay the December salaries as initially scheduled.
These will be covered by the Austrian state insolvency fund, but employees are expected to receive their wages only at the end of January. There is also an agreement in place with banks and sales subsidiaries, as well as 35 million euros raised through the sale of real estate assets.