Pierer Industrie AG avoids insolvency, decision on KTM imminent

Pierer Industrie AG, which not directly owns KTM, has prevented insolvency after present process restructuring.

On Thursday, collectors voted on the European restructuring plan (ReO) of Pierer Industrie AG on the regional courtroom of Wels, in Higher Austria. This was the primary time that this process was utilized in Austria beneath the restructuring directive, which got here into drive on 17 June 2021.

In precept, this course of permits corporations prone to insolvency however not but bancrupt to bear a court-supervised restructuring process, giving them the chance to recuperate financially earlier than having to declare chapter.

Pierer Industrie AG pursued this restructuring course of to completely repay financing obligations amounting to €247.5 million. The purpose was to increase the compensation interval over two years as a substitute of settling the money owed instantly.

The method primarily involved the extension of maturing bonds and promissory notes. The listening to on Thursday afternoon lasted about an hour, and the proposal submitted by the corporate on 27 December 2024 was accepted. This marks the completion of its restructuring course of.

Consequently, the money owed won’t should be repaid on the initially agreed dates however as a substitute by the brand new deadlines of 31 December 2026 and 31 December 2027.

Primarily based in Wels, Pierer Industrie AG holds a 50.1% stake in Pierer Bajaj AG, which in flip owns 74.94% of KTM’s dad or mum firm, Pierer Mobility AG. Moreover, Pierer Industrie AG holds an 80% stake in automotive provider Pankl AG.

KTM faces essential listening to

On 25 February 2025, the regional courtroom of Ried im Innkreis will vote on the restructuring plan for KTM AG and two of its subsidiaries. Collectors will then resolve whether or not to approve the proposed plan.

KTM has accrued money owed exceeding €2 billion from 1,170 registered collectors, together with banks and suppliers. Moreover, there are round 2,500 claims from workers.

The minimal authorized supply to collectors stands at a 30% compensation fee. In mid-February, KTM improved the supply with a money fee, which means that the proposed 30% won’t be paid over two years, as is customary, however by the tip of Might.

This cash is predicted to be supplied by the house owners, new traders and banks, and deposited with the insolvency administrator by mid-April. The quantity is estimated to be round €600 million. Lately, US hedge fund Whitebox advocated for the next compensation fee.

In the meantime, efforts are beneath manner in Mattighofen to renew manufacturing by mid-March. KTM has said that it’s engaged on securing the required liquidity, with the required €150 million reportedly already dedicated by the house owners.

The prerequisite for that is the collectors’ vote scheduled for subsequent Tuesday. If the plan is rejected, chapter and the break-up of the corporate may very well be imminent. In that case, it’s unlikely that any funds will probably be accessible to restart manufacturing.