KTM AG’s restructuring plan accepted by creditors!
With a calculated break-up rate of 14.9%, the restructuring administrator considered the restructuring plan to be economically appropriate, since there was also no realistic alternative scenario to the restructuring plan offer.
The creditors are to receive a 30% cash quota, which must be paid to the restructuring administrator by May 23, 2025.
However, the confirmation will also be dependent on the continuation costs expected to arise up to 23 May 2025 in the amount of approximately EUR 150 million being deposited or secured.
The first tranche of this continuation guarantee, namely EUR 50 million, was already received yesterday in a trust account of the restructuring administrator.
Production is scheduled to resume in mid-March 2025.
Approximately EUR 750 million must be deposited or secured by May 23, 2025, namely EUR 600 million for the 30% quota and EUR 150 million for the continuation.
The name of the financing investor is still unknown!
As is known, on November 29, 2024, restructuring proceedings with self-administration were opened for the assets of KTM AG and its two subsidiaries KTM Forschungs & Entwicklungs GmbH and KTM Components GmbH.
In order to fully satisfy their claims, regardless of whether they are outstanding book or bill claims, the insolvency creditors will receive a 30% quota, payable within 14 days after the restructuring plan has been legally confirmed. The prerequisite for confirmation is that the 30% cash quota and the procedural costs are paid to the restructuring administrator by May 23, 2025 at the latest.
This means that judicial confirmation of the restructuring plan will only take place after the 30% cash quota has been paid and after the estate claims (continuation costs until May 23, 2025) have been secured.
The restructuring plans will only be confirmed if they can be considered feasible. The continuation costs incurred up to May 23, 2025 will therefore also have to be deposited. In this regard, a liquidity requirement of around EUR 150 million is expected.
Therefore, approximately EUR 750 million will have to be deposited or secured with the restructuring administrator by May 23, 2025 at the latest.
In any case , the fulfilment of this high restructuring plan requirement of approximately EUR 750 million requires considerable financial contributions from an investor .
The restructuring administrator has considered the restructuring plans to be economically appropriate , especially since a liquidation rate of 14.9% is calculated before possible claims for damages and rescission as well as possible claims for the return of deposits. The restructuring administrator assesses the probability of such claims being enforced and collected in such a way that they would not lead to a result that would be more favorable than the 30% restructuring plan rate offered. In his opinion, there is therefore no realistic alternative scenario to the restructuring plan offer.
