The ailing Motorcycle manufacturer KTM AG wants to undergo restructuring proceedings. The Austrian company currently needs a high three-digit million amount, but the management “does not assume that it will be possible to secure the necessary interim financing in a timely manner,” said the owner Pierer Mobility AG in Mattighofen.
It was said that KTM would apply for judicial restructuring proceedings under self-administration. The company announced a reduction in production over the next two years in order to reduce inventory and ensure the long-term survival of the KTM Group.
In response to the collapse in demand, the company announced in mid-November that production would be cut back. Around 300 jobs will be cut by the beginning of 2025. Production will be suspended from Christmas to the end of February. Previously, 700 jobs had already been cut this year. KTM currently employs around 5,000 people in Austria.
KTM is part of the Pierer Industrie group, which announced on Monday that it would initiate European restructuring proceedings under the Restructuring Regulations (ReO). Only certain creditors are affected by this procedure; the remaining liabilities will be serviced as agreed. The group is not over-indebted, it said.
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