Signs of Life as Pierer Industrie AG has Restructuring Plan Approved

Pierer Industrie AG has had a restructuring plan approved ahead of a crunch vote to determine its future on 25 February.

A creditors meeting will take place to determine whether the Pierer Mobility Group has a future and if so what that will look like, but before the vital vote has even taken place the Austrian company’s restructuring plan has been given the green line in court.

It's the first step to securing its future after the Pierer Mobility Group’s mass debts of over €2 billion resulted in it going into self-administration at the back end of last year.

The vote to determine whether KTM’s restructuring plan will go ahead will take place next Tuesday, and if successful, the Mattighofen-based firm will pay back 30 per cent of its total debts to creditors by the end of May.

Initially, the timeline for its debts to be paid back was set to two years. However, investment from over 20 parties to the tune of up to €900 million, including subsidiary brands CFMoto and Bajaj Auto has allowed this timeframe to be reduced.

Reported by Austrian media company ORF, around €600 million is needed to meet the repayment quota while a further €150 million will be necessary to end KTM’s production freeze at its headquarters.

Pierer Industrie AG had its restructuring plans accepted on Thursday in a hearing at the Wels Regional Court and now it is hopeful of restarting its manufacturing process at some point next month.

KTM’s ongoing financial issues have continued to plague them in recent months as racing programs have also been scrapped, while changes at the head of the company have been made in a bid to reduce costs.

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