Creditors Decide on KTM Restructuring Plan

The creditors at the Regional Court Ried im Innkreis will vote on Tuesday on the KTM restructuring plan, which offers them a 30 percent cash quota. The total claims amount to around 2.25 billion euros, of which a good 2 million are recognized.

Rumors About BMW's Entry into KTM

Insolvency administrator Peter Vogl confirmed on Monday that there are interested strategic investors, but did not want to comment on rumors about a BMW entry. "I can confirm that there are international strategic investors interested in the successful continuation of KTM. These investors place great importance on the confidentiality of the negotiations," therefore he asked for understanding that he could not go into further detail, Vogl said in a written statement to the APA.

The background is a report by the newspaper "Österreich": On Monday, it brought BMW Motorrad into play as an investor. According to the article, BMW wants to buy and continue the KTM brand. However, they want to move research and development to Germany and production to India, as well as terminate all employees in Austria. Oberbank CEO Franz Gasselsberger, who is mentioned in the article as a supporter of this plan, denied supporting it on Monday at the sidelines of a press conference in Linz. As a bank of the economy and industry, they would only support projects that would strengthen the location. BMW stated to the APA "no comment." Vogl had also previously emphasized that "no strategic investor will manage without the Innviertel location."

KTM Restructuring Not Yet Secured

First, the creditors must approve the restructuring plan. The money from the quota is to be paid out by the end of May. However, if the restructuring plan is rejected, bankruptcy and likely liquidation would follow, Vogl warned in advance. He predicts a liquidation quota of only 14.9 percent in this case. To meet the quota, the company must raise around 600 million euros. An investor search is underway for this. There are likely to be around 20 offers. In addition to Stephan Zöchling, the new chairman of the supervisory board of KTM's parent company Pierer Mobility, and the Indian KTM partner Bajaj, CF Moto from China and FountainVest from Hong Kong have also been rumored - and now also BMW.

Additionally, around 150 million euros are to be raised from the ownership sphere to restart production at the currently idle plant in Mattighofen (Upper Austria) and to finance operations until the end of May. The entire KTM group currently has around 4,400 employees after several waves of layoffs, of which nearly 2,000 are with KTM AG. At the time of the insolvency opening, KTM AG still had about 2,500 employees. For those affected by the waves of layoffs, an insolvency foundation was set up by the AMS and the state of Upper Austria, which is also open to other affected parties. According to the AMS, 61 people are currently registered for the foundation, 54 of whom are from KTM operations and 7 from supplier companies.

(APA/red)

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