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The latest phase of the still-to-be-written KTM story is the news that the bankruptcy trustee handling the case has put the MV Agusta shares held by the Austrian brand up for sale.
Pierer Mobility AG, KTM's parent company, which had acquired 25.1 percent of the shares in the famous manufacturer in November 2022, went into majority ownership just last March. Therefore, 50.1 percent of the shares will be put up for sale, at least according to the December 17 decision of the Regional Court of Ried im Innkreis in Upper Austria.
It may be the former owner, Timur Sardarov, who is interested in the purchase, so as to regain control of the company.
Like the Mattighofen manufacturer, the one in Schiranna had to deal with overproduction, which led to an unsold inventory of about 2,000 pieces that are reportedly currently in Austria. Clearly, the next step will be to decrease the pace of work, with conseguences on the employment of workers who, in their paychecks will find themselves with 20% less than their contractually established salary.
Pierer Mobility itself disclosed that Citigroup Global Markets Europe has been tasked with reorganizing the structure. As we learn from a statement, negotiations with strategic and financial investors have reportedly already begun. The goal, of course, is to increase the capital so that the Group, which includes KTM, can survive and be strengthened.
There are other problems, however. According to reports in the local newspaper Oberosterreichische Nachrichten, listed Pierer Mobility allegedly violated disclosure rules in a period from May to November when it changed its business forecast and changed its board of directors. Normally when a listed company has inside information, it has an obligation to disclose it to all market participants under the penalty of even heavy penalties, but in this case it would not have been complied with, as a result the Financial Markets Authority, the FMA, formally launched an investigation asking the direct stakeholder for explanations on the matter.
Meanwhile, a meeting was held this Thursday between KTM's top management, the Upper Austrian Chamber of Labor and the main labor unions in the face of possible new layoffs. Between now and December 31, the number of people out of work is expected to increase by another 50 to reach the figure of 800 since insolvency proceedings were declared.
The first meeting of creditors will take place this Friday at the Regional Court in Ried Im Innkreis, with bankruptcy administrator Peter Vogl in charge of presenting a report. At the juncture, authorities will comment on whether KTM and its two subsidiaries can continue to operate.
