First reactions

Despite breathing a sigh of relief: concerns about jobs at KTM remain

KTM AG restructuring manager Peter Vogl, CEO Gottfried Neumeister and Karl-Heinz Götze from KSV1870.

(Bild: Krone KREATIV/Daniel Scharinger)

More than four hours after the start of the restructuring plan meeting, it was clear: KTM has been given the green light for the 30 percent quota offered. This means that the creditors will receive a total of around 600 million euros, which will be used to pay off the mountain of debt. Read the initial reactions here, which also addressed concerns about jobs in the Innviertel region.

On Tuesday, all but one major creditor and a few small creditors voted in favor of the 30% quota offered by KTM - a clear majority that ensures the survival of the motorcycle manufacturer. The fact that the quota will already be in the creditors' accounts by the beginning of June is viewed positively. "You can work with the money so quickly - that helps to ensure the continuation of these companies," said Karl-Heinz Götze from KSV1870. Cornelia Wesenauer from AKV was cautious: "I will be happy if my creditors actually receive the 30 percent quota and relieved if the employees still have a job in Mattighofen in six and twelve months' time."

"Securing jobs at KTM is still the top priority"
As it remains to be seen who will join KTM as an investor, there are doubts as to what the future holds for the headquarters and production in Mattighofen and the surrounding area. "Safeguarding jobs at KTM remains our top priority," emphasized Governor Thomas Stelzer and Markus Achleitner, State Councillor for Economic Affairs.

"With the acceptance of the restructuring plan, employees can regain hope that things will continue at the site," explained Andreas Stangl, President of the Upper Austrian Chamber of Labor. KTM AG and Pierer Mobility AG CEO Gottfried Neumeister revealed that "all interested parties still participating in the process are interested in maintaining the site." In addition to Pierer's Indian partner Bajaj, which is also providing the first 50 million euros to ramp up production, Remus owner Stephan Zöchling and BMW are also being discussed as potential investors. Regardless of who is currently being spoken to, the same applies in all cases: everything is strictly confidential.

"The decisive step"
On Tuesday afternoon, the focus was initially on approving the restructuring plan anyway. "It is not yet the final rescue, but it is the decisive step," said KTM AG restructuring administrator Peter Vogl. With a view to the opening of insolvency proceedings in November 2024, Neumeister spoke of a heavy fall: "We fell so hard that we would not have been able to get up again on our own." Thanks to the concessions made by banks and financial institutions as well as suppliers, who all gave up a lot of money, it was possible to carry on. "We are ending a sad chapter and have been given the chance to continue the KTM story."

It is a painful cut for all creditors to concede an amount of this magnitude and agree to the restructuring plan.

Peter Vogl, Sanierungsverwalter der KTM AG

Production in Mattighofen, which has been at a standstill since December 13, is to be restarted on March 17. 150 million euros are necessary for this, the first 50 million euros, which Bajaj is taking over, are in the escrow account of Vogl, who will transfer the money to KTM on Wednesday, February 26. From Vogl's point of view, the 50 million euros were "a game changer", as he emphasized. "A signal was sent here. The creditors have seen that the owner believes in the restructuring and the investor process."

"Together we will make it"
Neumeister, who took over as CEO from Pierer a month ago, also underlined his ambitions: "I promised everyone that I would stay here to continue the company. Together we will achieve this."