Restructuring through

Pierer Industrie clears hurdle in the battle for the future

Various Pierer companies have their headquarters on Edisonstrasse in Wels.

(Bild: Wenzel Markus)

Five days before KTM's creditors vote on the motorcycle manufacturer's restructuring plan, the first important milestone in the battle to save Stefan Pierer's group of companies was set at the regional court in Wels. The restructuring plan of Pierer Industrie AG was given the green light.

Room 22 on the ground floor of the regional court in Wels: The hearing in the European restructuring proceedings of Pierer Industrie AG took place in the jury courtroom on Thursday afternoon, at which the creditors voted on the restructuring plan submitted.

Two payment dates, then bonds and promissory note loans will be repaid
After 58 minutes it was clear: the proposals submitted on December 27 by the company, which is the head of the KTM Group and also holds 80 percent of Pankl AG and 100 percent of electronics specialist Abatec in Regau, were given the green light. What has been offered to the creditors, who hold promissory note loans and bonds with a total value of 247.5 million euros? The interest will be paid as agreed and the financing will also be repaid in full, albeit not on the originally agreed dates, but on December 31, 2026 and December 31, 2027. 

This is an important step for Pierer Industrie AG, which has also given itself time to build up the liquid funds to do so. How will this be achieved? On the one hand, funds are to flow in via the shareholder level, and on the other hand from a profit participation right relating to the sale of shares in Leoni AG. Funds can also be generated through the strategic networking of SHW AG in Germany and Pankl Racing Systems AG in Austria, both subsidiaries of Pankl AG. The steps could also lead to a (partial) sale of shareholdings.

Pierer Industrie AG, which is owned by Pierer Konzerngesellschaft mbH and thus Stefan Pierer, had avoided insolvency with the European restructuring process.

600 million euros for 30 percent quota
On Tuesday, February 25, the regional court will vote on the restructuring plans for KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH. The creditors will be offered a 30 percent quota. This alone will require around 600 million euros. The ramp-up of production in Mattighofen, which is scheduled to go back into operation on March 17, will cost 150 million euros.