This Friday, KTM submitted paperwork in an Austrian court to begin insolvency proceedings, exposing a staggering debt of €2.9 billion.
The case involves KTM AG and its subsidiaries, KTM Components GmbH and KTM Forschungs und Entwicklungs GmbH. While KTM AG’s filings list €1.8 billion in liabilities, the Alpine Creditors Association (AKV) estimates the total debt for all three entities at €2.9 billion.
KTM AG’s debt is spread across approximately 2,500 creditors, including €1.3 billion owed to banks, €365 million to suppliers, and €40 million in outstanding employee salaries.
The crisis may affect 3,623 employees, who will receive their November wages and Christmas bonuses via the insolvency fund—a process that could take several months. Job security is under threat, with 500 layoffs anticipated by year-end and production set to halt in January and February.
Austria’s Minister of Labor and Economic Affairs, Martin Kocher, told ORF: “I expect clear answers from KTM on how a favorable earnings situation and good prospects could so quickly lead to restructuring procedures.”
Upper Austria Governor Thomas Stelzer, speaking to APA, emphasized ongoing efforts to support KTM but acknowledged legal limitations: “As politicians, we want to help and support. We are doing everything possible to save the factory and the jobs. However, EU state aid and insolvency laws effectively exclude liability.”
