The Austrian company KTM has been operating for 90 years and traditionally produces motorcycles of various classes (it also owns the Husqvarna and Gasgas brands), and in 2007, the brand even introduced the X-Bow series of supercars. More recently, it acquired a majority stake in Italian motorcycle manufacturer MV Agusta, making KTM the largest motorcycle company in Europe as a result.
But in the end he "drowned" in debt and now on the verge of bankruptcy. This alarming news was brought out by the company's press service. That day, KTM filed for a 90-day self-management that would allow it to restructure and defer payments on its loan. In other words, the company has now declared itself insolvent.
This is due to the fact that she was unable to raise the necessary interim financing. It is about the need to get additional hundreds of millions of euros to settle the debts. Anti-crisis management will allow delaying the time of full bankruptcy by attempting to negotiate with creditors to restructure loans.
The company will also need restructuring, which its management does not hide. Serious layoffs and "resizing of production" will begin in the near future. and it will lead to factory closures. Moreover, this is necessary not only to reduce costs, but also to help retailers reduce excess product inventory accumulated due to low demand.
According to the company's management, a number of factors that have developed over the past few years have led to such a deplorable state of affairs. Among them are the stagnation of the European economy and the recession in Germany, and in the US KTM sales fell due to the increase in credit rates, which reduced the purchasing power of the population.