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The Austrian company KTM has been operating for 90 years. It traditionally produces motorcycles of various classes (it also owns the Husqvarna and Gasgas brands), but in 2007 it introduced the X-Bow supercar series and recently acquired a majority stake in the Italian motorcycle manufacturer MV Agusta. As a result, KTM became the largest motorcycle company in Europe, but eventually drowned in debt. This was reported by the company's press service.
The other day, the KTM company filed for self-administration for up to 90 days, which will allow it to restructure and postpone the payment of loans. In other words, the company has now declared itself insolvent because it was unable to raise interim financing. It is about the need to get additional hundreds of millions of euros to settle debts. The anti-crisis management will allow to delay the time to try to negotiate with the creditors on the restructuring of the loans.
The company will also need restructuring, which its management does not hide. In the near future, the reduction of employees and the "change in the size of production" will begin, up to the closing of factories. Moreover, this is necessary not only in order to reduce costs, but also to help dealers reduce excess product inventories that have 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, 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's income.
