Creditors Approved KTM Restructuring Plan
The creditors approved the KTM restructuring plan by a majority on Tuesday morning at the regional court in Ried im Innkreis, as was announced after the meeting. A cash quota of 30 percent is planned, which is to be paid out by May 23.
KTM Restructuring Plan: 50 Million Euros Already Received in Escrow Account
According to restructuring administrator Peter Vogl, the "game-changer" was that the Indian KTM partner Bajaj transferred 50 million euros on Monday evening. However, it is not yet known which investor will ultimately join. The transfer of 50 million euros removed the risk from the creditors and strengthened their trust, said Vogl. "Rather 90 than 80 percent" of the creditors - calculated by capital - accepted the restructuring plan, and in terms of headcount, there were only 37 dissenting votes out of around 3,500 approvals - essentially one large and a few small creditors, according to Vogl.
Investor Process Continues After KTM Restructuring Plan
Stefan Pierer - now only Co-CEO - appeared at the meeting, as legally required. Afterwards, he left the courthouse quickly, bypassing the waiting media representatives. CEO Gottfried Neumeister appeared visibly relieved after the meeting: "We fell three months ago and we fell so hard that we couldn't have gotten up on our own." This help meant "painful cuts for creditors, suppliers, etc."
With the acceptance of the restructuring plan, "we have gained time to properly continue the investor process we have started," Neumeister continued. However, it is still open who will join KTM, as well as how many applicants are still in the running. They refer to "confidential discussions." But: "I can assure you that all participants are interested in continuing and not just in the brand or a breakup." He currently does not see any further jobs at risk.
Credit Protectors Satisfied with KTM Restructuring Plan
The confirmation of the restructuring will also depend on whether the continuation costs, expected to arise by May 23, amounting to approximately 150 million euros, are deposited or secured, the Alpine Creditors Association (AKV) announced. The first tranche of this continuation guarantee, amounting to 50 million euros, was already received yesterday in a trust account of the restructuring administrator. It is planned that production will resume in mid-March 2025.
Creditreform stated on Tuesday afternoon to APA that although the investors have not yet been announced, the continuation of operations is initially secured. The credit protection association KSV1870 also expressed satisfaction: "From a creditor's perspective, an investor entry and the continuation of the company are economically sensible. In the event of a court-ordered closure and liquidation of the company, creditors would receive a distribution quota of just under 15 percent."
Stock Market Apparently Trusts in KTM Rescue
The parent company Pierer Mobility stated in a release regarding the further course of action: "The planned full capacity utilization of the four production lines in single-shift operation should be achieved within three months." The stock market apparently assumed from the outset that the company would be rescued. The share price of KTM's parent company Pierer Mobility has doubled since the announcement of KTM's insolvency at the end of November.
(APA/Red)
This article has been automatically translated, read the original article here.