KTM Bankruptcy: Employees Left Without Salaries and Christmas Bonus
The insolvent motorcycle manufacturer KTM in Mattighofen has already temporarily stopped production on Friday. The interruption of operations was brought forward by extending the Christmas holiday by one week.
Furthermore, the December wages and salaries will not be paid in advance after all, the company confirmed without comment. The Ried District Court is preparing for a large turnout for the report day session with the first creditors' meeting on December 20th.
December Funds Will Not Be Paid to KTM Employees After All
Andreas Stangl, President of the Upper Austrian Chamber of Labour, expressed his disappointment about KTM's procedure: "There simply is no more handshake quality." Even the salaries and wages for November and the Christmas bonus were not transferred.
Originally, it was said that they wanted to pay a 90 percent advance of the December money before Christmas. The company is "apparently not capable" of doing this, Stangl said. The Chamber of Labour will do everything to "ensure that the employees receive their outstanding claims from the insolvency compensation fund as quickly as possible."
Only a 30-Hour Week from January
At the same time, the company announced that production would also be halted prematurely. The affected employees took additional vacation or reduced overtime for the extension of the Christmas holidays. The previously announced operational interruption due to high inventory levels will then take place in January and February. During this time, a weekly working time of 30 hours applies with a corresponding reduction in wages and salaries. The workers stay at home, while a four-day week applies to the employees.
As reported, KTM has about 130,000 motorcycles in stock, some of which are not expected to comply with the Euro5+ emission standard that will apply from next year. There are exceptions for "outgoing series", but they must be specifically requested by the manufacturer and only cover very limited quantities, which can then still be newly registered until the end of 2026. The ARBÖ stated on Friday in response to an APA inquiry that each dealer can take 100 units (or 10 percent of the sales volume) per model unregistered into the new year. These bikes must be sold by the end of 2026. All other motorcycles would have to be registered this year and would then be so-called "day registrations".
Separate Entrance for KTM Creditors into Court
On November 29, KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH filed for insolvency at the Ried Regional Court. The three companies have debts in the billions. 750 of the total 3,670 employees of the three companies will be laid off. A self-administration restructuring procedure has been opened. The report date hearing together with the first creditors' meeting will take place at the Ried Regional Court on December 20.
Due to the expected high turnout, there will likely be a separate entrance for KTM creditors, the court announced in advance. The proceedings for the three companies, which take place at two-hour intervals, are only open to parties, only persons with party status are allowed in the hall.
(APA/Red)
This article has been automatically translated, read the original article here.