Uncertainty grows

After bankruptcy because of KTM: trembling before new bankruptcies

Vöcklabrucker Metallgießerei GmbH has been bankrupt since Friday.

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

Financing promises were not kept, workers' wages could no longer be paid, more than 130 employees are threatened with job losses! The bankruptcy of Vöcklabrucker Metallgießerei GmbH is the first known insolvency that is directly linked to the difficulties at KTM. The fear of new bankruptcies is great.

Because the financial support initially promised by KTM has now failed to materialize, the wages for more than 100 workers could no longer be transferred! This was the reason why Vöcklabrucker Metallgießerei GmbH slipped into insolvency. The company, which has been in existence since 1955, officially went bankrupt on Friday - and is the first known victim of the difficulties at motorcycle manufacturer KTM.

Subsidiary of KTM Components GmbH
This is because Vöcklabrucker Metallgießerei GmbH, known as VMG Metall for short, is a wholly-owned subsidiary of KTM Components GmbH, which itself has been undergoing restructuring proceedings with self-administration since November 29. 

Production stop planned until mid-January
Due to the changed situation at the motorcycle manufacturer, VMG Metall should have interrupted production for a month until mid-January, while production planning was halved, according to Kreditschutzverband 1870. It then became clear that the initially promised bridging finance from KTM would not be forthcoming. This left the aluminum processor directly associated with the Innviertel-based company with no other option than to file for bankruptcy.

Trembling in the immediate company network
The insolvency of the former family business, which has only belonged to Stefan Pierer and KTM since the end of 2022, is causing huge tremors in the Innviertel company's immediate network. Uncertainty is growing as to whether further insolvencies - for example in the IT sector - could follow in the coming days.

Apart from this, several suppliers are also struggling mightily with the defaults. In addition to the restructuring plan, which so far provides for a 30 percent quota for the creditors, the production stop in Mattighofen until the end of February and the subsequent reduction of motorcycle assembly to a one-shift operation alone will have consequences.