Shock for employees

Insolvency! KTM files for reorganization on Friday

The motorcycle manufacturer will submit a restructuring application on Friday.

(Bild: Krone KREATIV/Daniel Scharinger, Sebas Romero)

On November 12, Pierer Mobility AG announced the need for far-reaching restructuring and a liquidity requirement in the three-digit million range. It is now clear that the motorcycle manufacturer will no longer be able to turn the corner and is filing for reorganization on Friday. Thousands of employees are affected.

On Monday afternoon, Pierer Industrie AG declared that it would initiate European restructuring proceedings under the Restructuring Regulation in order to extend the maturity of bonds and promissory note loans. Less than 24 hours later, the next bad news from Mattighofen - this time with even more far-reaching consequences.

KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH filed for insolvency on Friday because the necessary interim financing cannot be secured in time - this decision was made by the KTM AG Executive Board. Around 3650 people are employed in the companies affected by the restructuring proceedings with self-administration.

The KTM brand is my life's work and I am fighting for it.

Stefan Pierer, Chef der KTM AG

"Over the last three decades, we have grown to become Europe's largest motorcycle manufacturer. We inspire millions of motorcyclists around the world with our products. Now we are making a pit stop for the future," says CEO Stefan Pierer.

"We build our motorcycles to be reliable and robust for every race, for every surface. Now it's about making the company robust. Robust for the future," says Gottfried Neumeister, who has been with the company since September and recently took over the management of Pierer Mobility AG together with Stefan Pierer.

Advance on December salaries in the next two and a half weeks
KTM employs 5000 people worldwide, of which around 4000 work in Mattighofen and Munderfing. The employees of the affected companies have already been informed about the next steps at a works meeting: The outstanding salaries for November will be paid out via the insolvency compensation fund. An advance payment of 90 percent is to be made for December wages - this is to be transferred in the first two weeks of December. Although this is an important measure, it will not alleviate the fear of losing one's job.