KTM declared bankruptcy

The Austrian consortium KTM AG, the largest motorcycle manufacturer outside Asia, has declared bankruptcy. with a total debt of almost 3 billion euros.s, and has requested a judicial restructuring procedure through which he is trying to get out of the difficult situation in which he finds himself.

Insolvency case filed at the Regional Court Ried im Inkreis in Upper Austria, It also includes the subsidiaries KTM Components GmbH and KTM F&E GmbH.

KTM AG is located in Mattighofen (north of the country). owned by Pierer Mobility AG,

recently warned it had failed to raise the necessary funds to pay off its €1.8 billion debt to some 2,500 creditors. On November 25, in an official statement, the company announced the start of bankruptcy proceedings.

As can be seen from the request for restructuring of the local government, together with the obligations of its two subsidiaries,The total outstanding financing needs are estimated to be around €2.9 billion.– explained the Association of Alpine Lenders (AKV).

Jobs are at risk

Three bankruptcies affected 3,623 employees, This is due to a drop in demand, which, among other things, led to a surplus of 130,000 units of the company’s motorcycles, as well as an increase in production costs.

Known throughout the world for its high-performance motorcycles. and for his motorcycle team,

KTM has already begun to reduce personnel and production. The latter will be suspended for two months in January and February. At least 500 jobs are expected to be eliminated in the short term.

KTM AG owes most of its debt to banks, both Austrian and international. including Bank of China, Hewlett Packard Bank International, ICBC, Denizbank, BKS-Bank and First Commercial Bank.

Pierer Mobility AG, also based in Mattighofen, develops, produces and engages in the distribution of motorcycle equipment from the brands KTM, GASGAS, Husqvarna and MV Agusta Motorcycles.

Everyone has equipment in different categories of the World Championshipincluding MotoGP, which in 2025 will have Spaniard Pedro Acosta in the official team as a partner of South African Brad Binder. The design, despite the situation of the Austrian manufacturer, should not be endangered, at least in the short term, since it has with such a solvent sponsor as Red Bull, to continue its activities in the championship.