On Thursday, creditors at the regional court in Wels accepted the restructuring plan of Pierer Industrie AG, according to creditor protection representatives following the meeting.

Restructuring Plan of Pierer Industrie AG Could Be First Step Towards KTM Restructuring

The approval of the restructuring plan of Pierer Industrie AG is likely also the first step towards restructuring the KTM AG, which is associated through several levels. Pierer Industrie AG applied for a European restructuring procedure on November 25, 2024 - a pre-insolvency procedure applied for the first time in Austria. Essentially, it was about extending bonds and promissory note loans. The total nominal amounts were just under 250 million euros. The company needs liquidity in light of the KTM insolvency.

Claims to Be Fully Met According to Restructuring Plan

The restructuring plan of Pierer Industrie provides that 68.69 percent of the financing will be repaid by the end of 2026 and the rest by 2027, plus agreed interest. It explicitly aims at the full fulfillment of the affected claims and merely an adjustment of the maturities to maintain the viability of the debtor, explained KVS1870. The affected creditors accepted the plan on Thursday. The successful completion of the first European restructuring procedure in Austria is a "win-win situation for both debtors and creditors". Additionally, it improves the conditions for a restructuring at KTM, said Gerhard Weinhofer, managing director of Creditreform, to APA.

After Approval of Restructuring Plan of Pierer Industrie AG: KTM Creditors Decide on Tuesday

This could mark the first stage in the restructuring of KTM AG, as expected by the Alpine Creditors' Association (AKV). On Tuesday, creditors in Ried im Innkreis will vote on their restructuring plan - and the restructuring plans of the also insolvent KTM subsidiaries KTM Components GmbH and KTM Research & Development GmbH. KTM offers creditors a 30 percent cash quota. To finance the quota, around 600 million euros are needed, and an additional 150 million euros are required to restart the currently idle production at the plant in Mattighofen.

(APA/Red)

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