Improved Rehabilitation Plan: KTM Aims to Accommodate Creditors with Cash Quota

This means that the offered 30 percent will not be paid out over a period of two years as usual, but promptly. The money is to be provided by the current owners, new investors, and banks and deposited with the restructuring administrator by April 15, the company announced on Wednesday.

Recently, there have been murmurs from the banks, as they wanted a higher quota. The US hedge fund Whitebox has reportedly been trying to buy up banks' promissory note claims since the opening of insolvency and has announced resistance to the restructuring plan.

Whitebox Offer Not Feasible for Restructuring Administrator

According to insolvency administrator Peter Vogl, the alternative offer made by Whitebox to the creditors is "not feasible under the applicable Austrian law." It would only offer creditors the possibility of an improvement "if they first waive their quota and also provide additional financing," Vogl warns: "If the restructuring plan is rejected in the hope of this proposal, there is a risk of bankruptcy and thus liquidation." In that case, creditors could only expect a quota of 15 percent.

The ongoing investor search process is "currently in the decisive phase," the announcement further stated. The meeting to vote on the restructuring plan will take place on February 25 at the Regional Court of Ried im Innkreis. By the end of February, the financing for the resumption of production should be in place. The plant is currently not producing, with a restart planned for March 17.

(APA/Red)

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