The majority of the claims come from financial institutions – There are 23 potential investors – Production in Mattighofen is to be restarted in mid-March
As part of the insolvency proceedings of KTM AG and two subsidiaries, the verification hearing took place on Friday at the Regional Court of Ried im Innkreis (Upper Austria). Creditors have filed claims totaling around 2.2 billion euros.
At a verification hearing, the current status of the filed claims is announced. Insolvency administrator Peter Vogl presented his third report. The insolvency debtor must also present a statement of all registered claims.
These are either recognized or disputed. A total of 3,534 claims have been filed against KTM AG. These are divided into 2,347 claims from employees and 1,187 claims from other creditors.
Claims against KTM AG amount to 2.18 billion euros. Of this, 1.66 billion has been recognized so far. At KTM Components GmbH, there are 739 claims for almost 81 million euros. 48.8 million euros have been recognized.
KTM Forschungs- und Entwicklungs GmbH has 1,162 claims amounting to almost 112 million euros, of which 41.4 million have been recognized. These figures are listed by the Alpenländische Kreditorenverband (AKV) in its report.
The majority of the debts were accumulated at various banks. According to the report of the insolvency administrator, financial creditors account for around 1.7 billion euros. As a result of pressure from them, there was also a change at the top of the company.
On the evening before the court hearing, Pierer Mobility AG announced that Stefan Pierer would step down as CEO and that Gottfried Neumeister would be the new boss. Pierer remains on board as co-CEO. It was also reported that there are several interested investors.
23 potential investors
As reported, Citigroup Global Markets AG has been commissioned to find new investors. A total of 23 potential investors are taking part in this process. On the one hand, they are said to be strategic investors and, on the other, financial investors.
Karl-Heinz Götze, the head of the Kreditschutzverband von 1870 (KSV1870), commented on this in a press release as follows: “From a creditor’s point of view, the entry of investors and the continuation of the company make economic sense.”
“If the company were to be closed down and broken up by the insolvency court, creditors would receive a significantly lower recovery rate. If the company were to be closed, significantly more jobs would be lost, which would have a massive negative impact on the entire region.”
KTM is aiming for a recovery rate of 30 percent, which is to be paid within two years. At today’s creditors’ meeting, positive signals were sent by potential investors regarding this 30 percent rate.
Production is to be ramped up again from March 17
Production in Mattighofen was halted in mid-December. The plan at present is to gradually ramp up production again from March 17. The number of employees has been continuously reduced.
At the end of 2023, the entire KTM Group had around 6,000 employees. Currently, there are still around 4,400. At the beginning of the insolvency proceedings, KTM AG had 2,500 employees. Currently, around 2,000 employment relationships are still in place. No further layoffs are planned.
February 25 is the decisive date in the insolvency proceedings of KTM AG and two subsidiaries. On that day, creditors will negotiate their registered and recognized claims regarding the offered restructuring plan with the quota of 30 percent.
The financial contribution of potential investors should make it possible to fulfill this legally required quota. This means that creditors will receive at least 30 percent of their registered claims, but possibly more.
