The latest news from Pierer Mobility predicted the worst, and the truth is that it is now official that the KTM AG division of the motorcycle manufacturer will request bankruptcy status in an attempt to save the brand, and surely also the entire cluster.
Sad news, one that we don’t like to give, but there are still options for KTM recover from the large debt it has, and for which it has reached this situation, since the need for liquidity now amounts to 250 million euros.
Bad times for KTM
It is difficult to know how this situation has come to be, since we are talking about what continues to be one of the most important motorcycle manufacturers in the world. It is true that the two-wheeled sector is going through a difficult time, but perhaps Pierer Mobility He was the one who had the most things in his favor to survive.
In fact, they recently took everything MV Agustawhich seemed a sign of the strength of the Austrian group, which also owns GasGas and Husqvarnain addition to the aforementioned KTM.
A strategy that has not worked, given the recent events that have ended up having to live through this unpleasant situation, in which those 250 million euros need to be recovered to move forward.
It must be taken into account that, in addition to failing to earn a lot of money from expected sales in recent years, the company’s shares have also fallenup to 45%, and experts still expect it to do more, in what is the biggest stock market crash in history for Pierer Mobility, the parent company.
An inevitable bankruptcy
When the bankruptcy proceedings become effective, which, as we said, the Friday, November 29KTM AG will be able to operate under the judicial procedure, in an attempt to solve the problems of insolvency or lack of liquidity you have.
This process is estimated to take 90 days, as indicated in the official statement from the Austrian manufacturer, which has announced everything in a clear and transparent manner, and hopes to obtain support from investors. We said a few days ago that perhaps Bajaj is the right one to keep a part of KTM, and thus help Pierer, with whom he has had a close collaboration for years.
All this that we are living, Stefan Pierer, KTM CEOhas defined it as “a pit stop” and assures that he will give everything to prevent the brand from disappearing.
“The KTM brand is my life’s work and I will fight for it,” Pierer said in the video that accompanies the official statement.
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