Austrian-owned motorcycle brand KTM has been given 90 days to save itself from bankruptcy. But it is now clear that employees will not receive salaries in December.
Motorcycle manufacturer KTM, which is threatened with bankruptcy due to billions in debt, cannot pay salaries to employees in December.
KTM, which also produces Husqvarna motorcycles, has been in financial difficulties for some time, and the situation has now escalated to a point where the company can no longer meet its payroll obligations.
– It is regrettable that employees who have nothing to do with the bankruptcy are being hit like this, says Christian Hafenecker from the FPÖ (Freedom Party of Austria) to Vienna.at .
The employees had their last working day before the Christmas holidays on December 20. But they have to look far for the salary that would normally cover expenses during the Christmas holidays and January.
Instead, they rely on the state's insolvency support, a fund that covers wage costs in the event of a company's bankruptcy.
The Austrian court declared KTM insolvent at the end of November and gave the company until March 5 to find a solution. A plan must be negotiated with creditors, and employees must work 30 hours a week with pay during this period.
Despite these measures, KTM has already run out of money in December. The last motorcycle rolled off the production line on December 13, the same day that subsidiary Vöcklabrucker Metallgießerei also went bankrupt.
KTM's decline has come as a surprise to many. Just a year ago, the company bought the last of the Italian Agusta and paid out large bonuses to executives, including owner Stefan Pierer.
The first warning of the deficit came in October, and things have been going well since then. However, according to experts, the warning signs should have been clear earlier.
On December 20, the creditors met at KTM to be informed about the situation and the possibilities for having their claims covered.
At the same time, the employees planned a modest Christmas party, which they had to finance themselves. The future of Husqvarna, which KTM produces under license, remains uncertain.
