Waiting for money

After bankruptcy: fateful days for KTM companies postponed

KTM's insolvency also affected two of the motorcycle manufacturer's IT companies.

(Bild: Wenzel Markus)

On February 25, the creditors gave the green light for KTM's restructuring plan - but for some of the motorcycle manufacturer's companies, the battle for the future has not yet been won. With Avocodo GmbH and Pierer E-Commerce GmbH, the fateful days were recently postponed for the two IT specialists that had slipped into insolvency.

All's well that ends well - not so! Even though the restructuring plan for KTM AG, KTM Forschungs & Entwicklungs GmbH and KTM Components GmbH was given the green light on February 25 at the regional court in Ried im Innkreis, the restructuring is only complete once the money has flowed in. The motorcycle manufacturer has until May 23 to raise the 600 million euros required to meet the 30 percent quota. While it is customary in restructuring proceedings for companies that have slipped into insolvency to pay their quota in stages over two years, KTM intends to do this in one fell swoop.

The company from Mattighofen still has almost two and a half months to put a "done" tick behind the search for investors. But the fact is: as long as the case is not settled, not only creditors, customers, suppliers and employees are trembling, but also other companies from the KTM Group. With Avocodo GmbH from Linz and Pierer E-Commerce GmbH from Munderfing, two of the motorcycle manufacturer's IT companies have been insolvent since January 7. Both companies are to be restructured.

29 employees have already left
Avocodo has already made some painful cuts in recent weeks. Several divisions were closed in February, and 29 employees have resigned. The workforce shrank to 86 employees. The number of employees at Pierer E-Commerce remains unchanged - 25. At Pierer E-Commerce, the number of recognized claims so far amounts to more than 1.1 million euros, at Avocodo to 3.26 million euros.

Interesting: Although the restructuring plans of both IT companies were to be voted on in April, these dates have now been postponed. The votes will not take place until the beginning of June. The reason: KTM must first transfer the 600 million euros and thus complete the restructuring process so that Avocodo and Pierer E-Commerce also have certainty that they will be able to fulfill their restructuring plans.