During the investigation session at the end of last week at the Ried regional court in Innkries in connection with the restructuring procedure of KTM, there was insight into the debt burden of KTM. And that is quite big to say the least.
According to the Alpine Credituren Association (AKV), 3,534 claims have been submitted to date, of which 2,347 by the staff (€ 12,718.555,48) and 1.187 by other insolvency creditors (€ 2,172.626.05.361), what the total amount on the total amount on the total amount on the total amount on € 2, 84 brings. To date, claims have been included for an amount of € 1,665,985,681.24.
Many more claims are to be expected. The claims do not yet include those of employees who have been fired or have left the company, and continuous claims are still being made to the court, which will be treated separately in another special investigation. It is therefore to be expected that the number of claims submitted will increase in the procedure.
For the time being, the “in -house” claims are disputed from the point of view of Equity replacement and possible challenges. These issues are investigated in detail with the help of experts, after there has been a significant increase in claims and settlements within the group since 1 January 2023 to finance current (loss -making) activities and the high liquidity needs. The restructuring manager is therefore currently analyzing financing within the Group.
In particular, damage claims that have been (conditionally) submitted by creditors in the event of not entering into current contracts are disputed for the time being. Since the production plans are currently being revised, there are often no statements from the restructuring manager or the debtor about entering into or canceling contracts. In the case of contract cancellation, the claims submitted would come into effect.
The claims made by creditors who have asserted the rights of separation on the basis of retention of title have also been disputed for the time being. This concerns claims worth around 200 million euros. In this context, the restructuring manager investigates whether these divorce rights or retention of title have been legally agreed.
The number of employees since the insolvency procedure at the end of November last year has started considerably. Of the original 2,477 employees, 1,991 are currently still working. In addition, 100 temporary employees were sent home and three management contracts were terminated.
As is known, production is currently standing still. The “continuation”, in particular the wage payment to the largely dismissed staff with a reduction in working time, is therefore financed with existing assets. To secure liquidity, it was therefore necessary to reverse the real estate transaction of Pierer Immoreal GmbH. Furthermore, money will come in through the importers. In particular at the level of the importers, efforts are made to arrive at a final agreement with financiers to secure liquidity in the longer term.
According to a validated financial continuity plan, the bankrupt estate to week 08/2025 should have sufficient cash. It is hoped that by that time an agreement will be reached with potential investors, because according to the current status of the procedure, the financing of the quota of the restructuring plan only seems plausible via an investor.
Despite the production stop, the company remains active, because only a “living” KTM Group will allow investors to the company. At the same time, KTM’s parent company Pierer Mobility AG has commissioned the CityGroup Global Markets Europe AG (“Citibank”) to find investors. This process is ongoing and in total 23 potential investors have already been found. These are reportedly both strategic and financial investors.
Numerous studies that have started have not yet been completed because of the size of the procedures. This concerns the assessment of the suitability of a restructuring plan, the investigation into the causes of insolvency and deterioration of the assets, as well as possible obligations or challenges. In addition, an order was given for an estimate of the movable assets.
The restructuring plan remains provided for the statutory minimum bid of 30%, affordable within 2 years. The meeting about the restructuring is planned for Tuesday 25 February 2025 and it is still to be seen whether a concrete bid can be negotiated by that time.
– Thanks for information from Motorfreaks.