PIERER Mobility AG / KTM
January 27, 2025 replace
Late final week common examination hearings passed off on the Regional Court docket of Ried im Innkreis regarding the restructuring proceedings with self-administration that have been opened for the belongings of KTM AG and its two subsidiaries KTM Forschungs & Entwicklungs GmbH and KTM Elements GmbH.
Following the conclusion of the listening to within the KTM AG proceedings, the Alpine Collectors Affiliation (AKV) introduced:
Usually
The present standing of the claims filed will probably be introduced on the examination listening to. As well as, the insolvency administrator and the bancrupt debtor should make a press release about all claims filed to this point, which should both be acknowledged or disputed.
The person procedures are as follows…
KTM AG
Claims Filings
So far, 3,534 claims have been filed , particularly 2,347 claims from workers and 1,187 claims from different insolvency collectors.
The registered declare quantity is:
Claims filed by different insolvency collectors EUR 2,172,626,058.36
Claims filed by workers: EUR 12,718,555.48
Complete: EUR 2,185,344,613.84
So far, claims amounting to EUR 1,665,985,681.24 have been recognised.
Quite a few subsequent claims are to be anticipated. The claims don’t but embrace termination claims from workers who’ve been terminated or have left the corporate, and claims are nonetheless being filed with the courtroom on an ongoing foundation, which will probably be handled individually in one other particular examination listening to. It’s subsequently to be anticipated that the claims filed within the proceedings will improve.
In the interim, the “intercompany” claims are disputed below the points of fairness alternative and potential challenges. These points are being examined intimately with the help of specialists, after there was a substantial improve in intra-group receivables and offsetting since January 1, 2023 to finance the continuing (loss-making) enterprise and the excessive liquidity requirement. The restructuring administrator is subsequently at present busy analyzing the intra-group financing.
Particularly, claims for damages filed (conditionally) by collectors within the occasion of non-entry into present contracts are additionally provisionally disputed. Because the manufacturing plans are at present being revised, there are sometimes no statements from the restructuring administrator or the debtor firm concerning contract entry or contract withdrawal. Within the occasion of contract withdrawal, the claims for damages filed would develop into efficient.
The claims filed by collectors who’ve asserted rights of separation on the grounds of retention of title have additionally been provisionally disputed. The quantity of claims in query is roughly EUR 200 million. On this regard, the restructuring administrator is analyzing whether or not these rights of separation or retention of title have been legally agreed.
Worker
The variety of workers has decreased because the insolvency proceedings started. Of the unique 2,477 workers, 1,991 are at present nonetheless actively employed , following a number of waves of layoffs and resignations.
As well as, 100 non permanent staff have been laid off because the insolvency proceedings started.
Moreover, three administration contracts have been terminated with the consent of the restructuring administrator.
Continuation / Liquidity
As is well-known, manufacturing is at present at a standstill. The “continuation”, particularly the continued cost of wages to the largely laid-off workforce on short-time work, is subsequently financed via current belongings. To be able to safe liquidity, it was subsequently essential to reverse the true property transaction of PIERER IMMOREAL GmbH. Additional inflows will come through the gross sales subsidiaries. On the degree of the gross sales subsidiaries particularly, efforts are being made to achieve a closing settlement with the establishments offering financing there so as to safe liquidity in the long run.
In line with a validated continuation monetary plan, the insolvency property ought to have ample liquid funds till week 08/2025. It’s hoped that an settlement will probably be reached with potential traders by then, as a result of based on the present standing of the proceedings, financing the restructuring plan quotas solely appears believable via an investor.
Traders
Regardless of the manufacturing stoppage, the corporate will proceed to function, as solely a “dwelling” KTM Group will permit traders to enter the enterprise.
On the identical time, KTM’s mum or dad firm PIERER Mobility AG commissioned Citygroup World Markets Europe AG (“Citibank”) to seek out an investor answer. This course of is underway and a complete of 23 potential traders are collaborating. These are mentioned to be each strategic traders and monetary traders.
Additional Checks
Quite a few opinions which were initiated haven’t but been accomplished as a result of scale of the procedures.
This issues the appropriateness evaluation of a restructuring plan, the examination of the causes of insolvency and asset deterioration in addition to potential liabilities or challenges. As well as, an estimate of the movable belongings was commissioned.
The restructuring plan continues to offer for the statutory minimal supply of 30%, payable inside 2 years.
The redevelopment plan assembly is scheduled for Tuesday, February 25, 2025, and it stays to be seen whether or not a concrete supply may be negotiated by then.
KTM Elements GmbH
Thus far, 739 claims have been filed on this process , 478 of that are from workers.
Insolvency claims amounting to EUR 80,971,072.08 have been filed , of which claims amounting to EUR 48,886,627.97 have been initially recognised.
The disputed claims amounting to roughly EUR 32 million are in the identical state of affairs as these of KTM AG. The disputes subsequently concern the “intercompany” claims amounting to EUR 21.9 million, potential claims for damages because of non-entry into contracts and estimates by the tax workplace and the ÖGK.
On this process, too, quite a few subsequent claims are to be anticipated; particularly, the claims for termination of employment by workers are nonetheless lacking.
When the insolvency proceedings started, the corporate employed 478 folks . In the course of the ongoing proceedings, 97 workers have been dismissed or resigned.
The vast majority of workers have been laid off as there may be at present no manufacturing. The monetary plan is being adhered to and liquidity and ” continuation ” are being coordinated with KTM AG, which is the primary buyer offering the liquidity.
On this process, too, the restructuring plan assembly is scheduled for February 25, 2025. The implementation of a restructuring plan will rely on an investor coming into the KTM Group.
The above figures confer with paperwork made out there to us yesterday and should change barely in right now’s session, as this doesn’t happen till 1:00 p.m.
KTM Forschungs & Entwicklungs GmbH
Thus far, 1,162 claims have been filed on this process , 772 of that are from workers.
Insolvency claims amounting to EUR 111,935,523.75 have been filed , of which claims amounting to EUR 41,409,918.79 have been initially recognised.
The disputed claims amounting to roughly EUR 70.5 million are in the identical state of affairs as these of KTM AG and KTM Elements GmbH (“intercompany” claims, claims for damages, and so on.).
Subsequent claims are additionally to be anticipated on this process.
The corporate at present employs 550 folks . At first of January 2025, there have been a complete of 146 layoffs.
On this process too, the continuation relies on the availability of liquidity through KTM AG.
The restructuring plan assembly can be scheduled for February 25, 2025 and the achievement of a restructuring plan relies on an investor coming into the KTM Group.
AKV EUROPA
Alpine Collectors Affiliation
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