Citigroup to Help KTM Restructure
Pierer Mobility is reported to have called on the global bank and investment firm Citigroup, to help restructure the KTM brand
KTM, along with its owner Pierer Mobility Group (PMG), is currently in the midst of trying to navigate its way through a period of self-administration.
Setting its sights on getting back to its previous best in the two-wheeled sector, it has now called in one of the biggest investment banks on the planet, as Citigroup steps in to help reorganise and restructure its business.
Markets Insider (MI) reports that KTM is currently in talks with multiple investors, both current and new, and that it is also looking to speak to strategic investors, which may be partners who offer knowledge and experience instead of capital. MI also reports that Citigroup Global Markets Europe AG has also been brought in, as it looks to assist in the above process in what MI reports is a “structured, transparent and efficient manner in the interest of all stakeholders.”
What will now follow, according to MI, is the creation of an investment process that will require parties to “subscribe to a necessary cash capital increase or financial instruments” of PMG. It goes on to state that the funds raised will be used to bolster the group, highlighting KTM as the main target of the funding.
Reports suggest that KTM group companies owe in the region of €3 million, and more recent reports from Austria points to workers not getting their November pay packets and that Christmas bonuses have gone unpaid. Hopefully bringing in a name such as Citigroup to help the brand going forward can help turn the situation at the Austrian brand around.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
