KTM Enters Self-Administration
to Avoid Bankruptcy
N
ovember 2024 will go down
as one of the darkest peri-
ods ever for KTM, the Austrian
motorcycle giant entering a self-
administration debt restructur-
ing plan with the Austrian Ried
Regional Court on November 29
with reported liabilities of a stag-
gering €2.9 billion ($3.03 billion).
Self-administration is a
European market measure that
allows for a 90-day effort to
reorganize and secure financing
to continue operations before a
company falls into insolvency.
KTM AG reports €2.7 billion
in liabilities with approximately
1600 creditors and 2380 employ
-
ees affected. KTM Forschungs
& Entwicklungs GmbH and KTM
Components GmbH, on the
other hand, assumes liabilities of
around €105 million ($110 mil-
lion) to around 550 creditors and
765 employees at the time of the
opening of insolvency proceed-
ings, according to the Alpine
Creditors Association (AKV).
"Over the past three decades,
we have grown to become Eu-
rope's largest motorcycle manu-
facturer," said Stefan Pierer, CEO
of KTM AG. "We inspire millions
of motorcycle riders around the
world with our products. Now we
are taking a pit stop for the fu
-
ture. The KTM brand is my life's
work, and I will fight for it."
KTM AG faces obligations to
approximately 2500 creditors,
including €1.3 billion ($1.36
billion) owed to banks, €365 mil
-
lion ($382 million) to suppliers,
and €40 million ($41.8 million) in
employee salaries. This financial
crisis could affect nearly 3623
employees, who will receive their
November wages and Christmas
bonuses via the insolvency fund.
Job security is at risk, with
500 layoffs anticipated by
year-end. Additionally, produc
-
tion operations are set to pause
in January 2025, with working
WIND
IN THE
P28
KTM CEO Stefan
Pierer (right) and
Co-CEO Gottfried
Neumeister(left).
