US EditionNear-Bankrupt KTM Owes $3 Billion, "Pauses" MotoGP Program
22 Articles
22 Articles
Near-Bankrupt KTM Owes $3 Billion, "Pauses" MotoGP Program
Austrian motorcycle giant and maker of the X-Bow sports car KTM is on the verge of bankruptcy and will begin a “self-administration” restructuring process to avoid dissolution. A big part of the company’s big money-saving efforts will see the MotoGP effort on the chopping block. KTM, which also owns motorcycle…Read more...
Austria is facing a record number of company collapses. High unit labor and energy costs are hindering competitiveness.
The restructuring administrators have obtained an initial overview of the situation at motorcycle manufacturer KTM, which has slipped into bankruptcy, and more than 3600 employees will be informed of the next steps by Wednesday. And politicians are also taking action: A round table is taking place on Thursday, and initial support measures are in preparation. On Friday, insolvency proceedings were opened against three companies owned by motorcycl…
Works meetings are scheduled at the three affected companies until Wednesday, timed to coincide with shifts and working hours.
Around 3,600 employees are affected by the KTM bankruptcy. They must now submit applications to the insolvency fund for outstanding salary payments
According to a media report, the insolvency of the Upper Austrian motorcycle manufacturer KTM is now also putting the MotoGP racing team in trouble. As the online portal Motorsport-Total.com reported on Tuesday, due to the financial problems, KTM has made an internal decision to stop the development of MotoGP bikes for the time being. KTM has not yet commented on this. MotoGP rights holder Dorna is said to have been informed of the steps.
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