KTM-Bankruptcy: Nearly Three Billion Euros in Debt
According to information from Creditreform and KSV1870, KTM AG has incurred debts of 1.8 billion euros. The subsidiaries KTM Components GmbH and KTM F&E GmbH have also filed for bankruptcy. The AKV calculates the total debt at almost 3 billion euros. More than 3,600 employees are affected by this.
Switch from Two-Shift to One-Shift Operation and Production Stop after KTM Bankruptcy
Already in the first month after the restructuring proceedings opened on Friday, according to AKV, 200 jobs at KTM AG, 250 at KTM Research & Development GmbH and 50 at KTM Components GmbH are to be cut. The reasons for the bankruptcy include increased location costs and the recession. Consumer downturn and a slump in demand have led to an extreme inventory of around 1 billion euros. The motorcycle surplus is currently around 130,000 units, added the credit protection association KSV1870. Therefore, a reduction in production - switching from two-shift to one-shift operation - and a production stop for January and February have already been announced.
KTM Bankruptcy: According to ORF, Bank Debts of 1.3 Billion Euros
In the worst case, liquidation, the liabilities amount to 2.1 billion euros according to Creditreform and KSV1870. If the restructuring is successful, there are 1.8 billion euros in liabilities, of which, according to ORF, 1.3 billion euros are bank debts. The creditors are offered a quota of 30 percent payable within two years in the restructuring plan. The AKV critically commented on the financially troubled company of industrialist Stefan Pierer. The last few years were still characterized by acquisitions and investments, so that record sales were still recorded in 2023. Against this background, the current bankruptcy and restructuring proceedings will have to be questioned. Specifically, KTM AG achieved a net profit of 109 million euros in 2023 with sales of almost 2 billion euros. The credit protectors do not see any influence on the European restructuring proceedings initiated on November 25 for the KTM parent company Pierer Industrie AG.
Difficult Situation for Mattighofen after KTM Bankruptcy
"Of course, such a large bankruptcy of such a large company is a huge blow for Mattighofen," said the head of the Upper Austria Employment Service, Iris Schmidt, on Ö1's "Morning Journal". This is likely to also endanger jobs in other companies in the region. "Generally, it is said that for every industrial worker, two additional jobs are lost. I hope that this will not happen on this scale." Currently, efforts are being made to explore foundation models for the region and for Upper Austria in general, said Schmidt. Upper Austria is the industrial state par excellence and it has been noticeable for months that companies are resizing. An industry-oriented country with a high export share is particularly hard hit by the recession.
(APA/Red)
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