Proceedings opened

Bankruptcy: KTM takes aluminum processor with it

Vöcklabrucker Metallgießerei GmbH has been in existence since 1955 and was a family business until it was taken over by Stefan Pierer.

(Bild: stock.adobe.com/Dmitry Volochek)

Over the last few days, rumors have been growing stronger and stronger, and since Friday afternoon it has also been confirmed by the Wels Regional Court: After three KTM companies have already been a restructuring case since the end of November, another company of the motorcycle manufacturer has now slipped into insolvency. The company affected is Vöcklabrucker Metallgießerei GmbH.

"Strong in shape, from a single source" is the slogan of Vöcklabrucker Metallgießerei GmbH, which can be read in bold letters on the company's website. The company has a long history and has been producing cast aluminum parts since 1955: Motorcycle swing arms, wheel hubs, gearbox housings, insulator caps and the like.

Customers such as Rosenbauer, Siemens and BMW are listed on the homepage, and KTM is also mentioned. However, there is far more than just a customer-supplier relationship with the motorcycle manufacturer, which slipped into insolvency at the end of November. VMG Metall is a wholly-owned subsidiary of KTM Components GmbH, for which restructuring proceedings with self-administration were opened on November 29.

Bankruptcy proceedings opened on Friday
VMG Metall has now also been insolvent since Friday. Bankruptcy proceedings have been opened for the company. In 2023, the company generated a turnover of around 33.6 million euros and had just under 160 employees. Only 134 employees are named in the insolvency application. According to Kreditschutzverband 1870, liabilities amount to around 3.5 million euros.

Advance payments had been promised
According to KSV1870, the management of VMG Metall had assumed until the end that KTM AG would provide the company with the necessary liquidity through appropriate advance payments in order to bridge the running costs during the phase of the planned production shutdown. This was apparently initially promised by the management board of KTM AG prior to the opening of insolvency proceedings, but could no longer be carried out. Now it was no longer possible to pay the wages of the 103 workers due on December 15.

A family business until the end of 2022
The company was a family business until the end of December 2022, when it was taken over by Stefan Pierer's network due to financial difficulties. Pierer had plans for VMG and wanted to turn the company into a competence center within the Group. Since Friday, December 13, the company has been bankrupt.