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A large manufacturer files for bankruptcy

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Austrian motorcycle manufacturer KTM filed for bankruptcy on Friday. The company and its subsidiaries owe nearly three billion euros to creditors.

Motorcycle manufacturer KTM AG filed on Friday in the district court in the Austrian city of Ried im Innkreis a request for bankruptcy of both the company and two subsidiaries. According to the information contained in the documentation, KTM AG has debts of EUR 1.8 billion, while the total liabilities of all three companies are estimated at approximately EUR 2.9 billion. The companies owe more than PLN 2,500 in money. creditors.

The declaration of bankruptcy will mean the dismissal of 3,623 employees employed in all three companies.

Debt of the motorcycle manufacturer KTM AG

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KTM's largest liabilities are towards banks, to which the company owes nearly EUR 1.8 billion. The documents submitted to the court show that these are 6 Austrian banks, as well as several international banks, including: With German, Hungarian Whether China.

In addition, the motorcycle manufacturer still has over EUR 356 million in debt to suppliers and subcontractors. These liabilities include, among others, promissory notes worth EUR 80 million and outstanding salaries of EUR 40 million.

Surprised creditors

KTM's creditors do not hide their surprise, because at the beginning of the week the company's representatives said that the total value of liabilities was around one billion euros. Meanwhile, the debts turned out to be three times greater.

Analysts estimate that KTM's financial problems result from cost pressure and declining sales results. They admit that in times of a slowing economy, a motorcycle is becoming an even more luxurious product than before, and as a result, the demand for this type of vehicles is falling.

The Austrian company KTM was founded in 1943 and is best known for producing high-performance, off-road and racing motorcycles. Since 2000, its machines have won first place in the prestigious Dakar Rally 19 times.

Main photo source: Bubbers BB / Shutterstock



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