Billions in debt

KTM

Motorcycle manufacturer KTM slipped into insolvency and is struggling to restructure.

(Bild: Scharinger Daniel)

Liabilities of up to three billion euros, 1.3 billion with banks and financial institutions alone! These are the figures that have been known since the reorganization proceedings at KTM were opened. How high the debts actually are will become clear in the course of the court hearings. For the creditors, the fight for money is also a fight against the clock.

December 20 is the first fateful day for KTM in the battle for restructuring. The restructuring administrators will not only report in detail at the regional court in Ried im Innkreis, but will also clarify whether the motorcycle manufacturer and the companies that have slipped into insolvency with it can continue to operate for the time being.

While everyone here is currently hopeful that the green light will be given four days before Christmas to continue the company, the tension among the creditors is enormous. The lists are long and comprehensive: KTM AG alone has 1,624 creditors, and with the companies to which KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH owe money, there are a total of 2,522 creditors who are trembling.

The creditors' concerns are great. This is already evident in discussions.

Petra Wögerbauer, Kreditschutzverband 1870

Bild: Starmayr

KTM is known to have debts in the billions: when the insolvency proceedings were opened on November 29, they were estimated at just under two billion euros, and experts even expect them to rise to three billion euros. Exactly how high the mountain of debt is will probably only be known on February 25, 2025, when the restructuring plan is put to the vote. However, there will be some initial clarity on this on January 24 at the general audit meeting, at which there will be a cash flow analysis.

Deadline for filing claims ends on January 16
Creditors have until January 16 to register their claims. Many are represented by creditor protection associations such as Kreditschutzverband 1870, Creditreform or AKV. "We are currently receiving numerous registration requests all the time," says Petra Wögerbauer from KSV1870. Will the KSV team receive support from other federal states in the same way as the Public Employment Service? "We try to process the registration orders in the KSV1870 Linz team. If bottlenecks arise, we will request support from other locations," says Wögerbauer.

Christmas vacations reduced to a minimum
To ensure that the volume of orders can be forwarded to the insolvency court on time, the insolvency team at the credit protection association in the provincial capital has reduced Christmas vacations to a minimum.

30 percent quota offered
As part of the restructuring plan, KTM wants to offer the affected creditors a quota of 30 percent. Whether this will be accepted and what it means for the affected suppliers and customers remains to be seen. For many, KTM is an important customer and partner.