All that has a beginning has an end— no not from some Asian sacred text–that’s from The Matrix sequel. But just as Neo fought on with no hope to defeat the endless clones of Agent Smith— the rise of multiple heads of creditors can and may get overwhelming.
What did Pierer Mobility do as solution– offer more promises to grab some more cash under essentially the same management. The previous CEO exchanged chairs with the Co-CEO and to me the financial meltdown is “beginning” to look like a Scam.
If it looks like a rat, smells like a rat, behaves like a rat— that might just be a rat.
“So far, there have been 3,534 claims, namely 2,347 employee registrations and 1,187 insolvency creditors.” ~ AKV Europe are the lawyers handling KTM’s self-imposed insolvency proceedings
In monetary value, employees want 12,718,555.48 euros ($13,377,462.38 USD), while KTM AG’s creditors want 2,172,626,058.36 euros ($2,285,168,088.18). A further $200 million,is demanded from KTM Components GmbH and KTM Research & Development GmbH.
AKV states, ” Numerous subsequent claims are to be expected. Thus, the notifications do not yet contain termination claims of the dismissed/resigned employees and, in addition, claims are still continuously submitted to the court, which are dealt with separately in another special examination day statute. It is therefore to be expected that the registered claims will increase in the proceedings.” Emphasis AKV.
Production of KTM brand’s motorcycles has halted due to a massive surplus with dealership, despite launch of multiple new motorcycles in the last few months, layoffs of employees have continued, contract work is halted, three executive board contracts were killed, and sell-offs of real estate are proceeding.
AKV states that the insolvency group has enough liquid funds to survive until August of this year, which would allow investors to form a group to save the company.
AKV states a total of 23 potentials have come forward. A restructing plan is due on February 25th, though finding an investor by then “remains to be seen.” Both Bajaj and CFMoto are, supposedly, the lead contenders at the moment.
—Wayfarer
Do Read the Press Release from Pierer Mobility as well
With Reference from
https://www.akv.at/akv-newsroom/presse/insolvenzen-ktm-ag-ktm-forschungs-entwicklungs-gmbh-und-ktm-components-gmbh-bericht-ueber-die-pruefungstagsatzungen
PRESS RELEASE FROM PIERER Mobility AG
27-January-2025
PIERER Mobility AG: Strong approval from shareholders at today’s Extraordinary General Meeting
- Resolution on the issue of financial instruments
- Stephan Zöchling Chairman of the Supervisory Board
At today’s Extraordinary General Meeting, all proposals were approved by the shareholders. This is another important step towards entering the final stage of the 90-day restructuring process of KTM AG.
Elections to the Supervisory Board
Stephan Zöchling was elected to the Supervisory Board with more than 96% approval. His term of office runs until the end of the Annual General Meeting that decides on the 2028 financial year. The Supervisory Board therefore continues to consist of six members elected by the Annual General Meeting.
Authorization to issue financial instruments
The Annual General Meeting also authorized the Executive Board with 99% approval to issue financial instruments within the meaning of Section 174 AktG. These financial instruments are, notably, convertible bonds, participating bonds and profit participation rights, which may also grant subscription and/or conversion rights for the acquisition of shares in the company. The authorization provides for the exclusion of shareholders’ subscription rights to these financial instruments and revokes the existing authorization of April 21, 2023.
Election of the Chairman of the Supervisory Board
The Supervisory Board meeting following the Extraordinary General Meeting elected Stephan Zöchling as the new Chairman.
Gottfried Neumeister: “I am delighted that our shareholders have given their strong approval to the proposals. These results underline the confidence of our shareholders in the strategy and commitment to sustainable growth of our Group. At the same time, on behalf of PIERER Mobility AG, I would like to thank Josef Blazicek for his many years of service and commitment as Chairman of the company’s Supervisory Board.”
Stephan Zöchling: “I would like to thank the shareholders for their trust. As the new Chairman of the Supervisory Board, I am happy to take on the responsibility of actively shaping the process of recovering the PIERER Mobility Group. I firmly believe in the power of the KTM brand to inspire motorcycle fans worldwide. My goal is to work together with the management and the entire team to further expand KTM’s position in the motorcycle industry, promote sustainable growth and pave the way for a technologically exciting future.”
REFER: https://www.pierermobility.com/en/newsroom/eqsfeed/2927291?type=corporate;presse
