Motorcycle brand KTM is close to bankruptcy. On Friday, it emerged that the Austrian brand owes DKK 19 billion. Now preparations are being made for production stops and layoffs.
On Friday last week, the Austrian motorcycle brand KTM entered a restructuring process to save the business and thus avoid bankruptcy. At the same time, however, it emerged that KTM and two subsidiaries have a total debt of 19 billion Danish kroner.
This is written by Motorcyclesports.com .
The situation may affect 3,623 employees. However, they are guaranteed their salary payment for the month of November through a so-called insolvency fund in Austria. However, the payouts themselves can take months.
Their jobs are also at risk. It is expected that KTM will lay off at least 500 people before the end of the year. While the production of motorcycles will be at a standstill in both January and February.
– I expect clear answers from KTM about how a favorable earnings situation and good prospects could so quickly lead to restructuring procedures, says Austria's Minister of Economy, Martin Kocher, to the medium ORF.
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The head of the state government in Upper Austria, Thomas Stelzer, tells the news agency APA that 'an in-state' must be done to help KTM. But he also points out that there are certain legal limitations associated with that help.
– Naturally, we as politicians want to help and support. We are doing everything we can to save the factory and the jobs. But EU state aid and insolvency legislation de facto excludes our liability.
According to Swedish Husqvarna, it is still too early to say anything about the license agreement that KTM's owner Pierer Mobility currently has.
– We have the agreement with KTM's owner Pierer, and it is too early to say anything about it. – We follow the development and hold a dialogue with the Pierer Group. then we have to see what comes out of this, says press spokesman Henrik Sjöström, according to Carup.
