PIERER Mobility AG: "Far-reaching restructuring and additional liquidity requirement at KTM AG"
In a November 11 'ad hoc' financial announcement, PIERER Mobility AG, the parent company for KTM, Husqvarna and GASGAS, has announced that it is engaged in liquidity planning for the 2025 financial year that will see it need to cover "additional liquidity requirements" for KTM AG.
As of June 30, 2024, the KTM AG Group was responsible for more than 95% of PIERER Mobility AG's revenue, and ongoing financial restructuring discussions with core shareholder Pierer Bajaj AG and major financial creditors of KTM AG will see it needing to secure bridge financing of KTM AG "in the three-digit million range".
The announcement stated that the Executive Board "is currently working to this end" and that "discussions are ongoing both with the core shareholder Pierer Bajaj AG and with existing financial creditors. The aim is to agree a standstill agreement with the financial creditors involved for the duration of these discussions as basis for the financial restructuring.
"The negotiations and discussions are currently at an early stage. It is therefore not yet possible to make any concrete statements about the outcome of the negotiations [or] the conditions and the size of the additional financing.
"In addition to securing liquidity, the Executive Board is endeavouring to put KTM AG back on a stable operational and financial basis. Against the backdrop of a challenging economic environment, an even more far-reaching operational restructuring is being driven forward with the aim of reducing inventories at both KTM AG and the dealer level to an economically sustainable level by significantly reducing production volumes.
"Furthermore, overheads are also to be significantly reduced once again. The aim is to stabilize costs and sales at a re-dimensioned level from the 2025 financial year and thus create the basis for sustainable competitiveness and profitability". The company stated that "further information will be published in due course"