Longer payment terms

Restructuring: Pierer Industrie pulls the ripcord

Motorcycle manufacturer KTM is in dire straits. Pierer Industrie AG, to which KTM belongs, has now pulled the ripcord and initiated European restructuring proceedings in accordance with the Restructuring Regulation.

(Bild: Scharinger Daniel)

The company emphasizes that it is not over-indebted and does not intend to reduce receivables, but only to extend payment terms - nevertheless, the measure is startling: Pierer Industrie AG, which in turn also includes Pierer Mobility AG together with motorcycle manufacturer KTM and Pankl AG, initiated European restructuring proceedings in accordance with the Restructuring Regulation.

On November 12, Pierer Mobility AG announced late in the evening that a far-reaching restructuring of the company was necessary and that KTM AG had a liquidity requirement in the three-digit million range. In the days that followed, events came thick and fast: A production stop for January and February 2025 was sealed, the layoff of 300 workers, plus a salary reduction for all employees - in other words, company-internal short-time work in Mattighofen. In the background, negotiations are in full swing to secure financing ...

This is Pierer Industrie

Pierer Industrie AG is a leading European automotive group with a focus on the global motorcycle segment and the automotive high-tech components sector. The group employs more than 10,000 people worldwide and generated sales of 3.6 billion euros in the previous year.

Goal: securing the Group's stability
However, the news on Monday afternoon was highly alarming. Pierer Industrie AG, which includes Pierer Mobility AG and Pankl AG, announced that it had decided to initiate European restructuring proceedings in accordance with the Restructuring Ordinance. Reason: The aim is to safeguard the stability of the Group.

Insolvency is to be avoided
The restructuring procedure under the Restructuring Ordinance is intended to avoid insolvency. In this specific case, Pierer Industrie AG wants to extend the deadlines for repayment of the full capital amount of two bonds (total: 115 million euros) and two promissory note loans (total: 132.5 million euros).

What is a restructuring procedure?

Restructuring proceedings are considered when a company is in a state of probable insolvency. It can only be initiated at the request of the debtor at court and is intended to help the debtor overcome financial difficulties without having to file for insolvency immediately.

Interest will be paid as agreed. It is expressly emphasized that Pierer Industrie AG is not over-indebted.