Originally, the company had announced to pay at the beginning of the month, but this was later revised. Now everyone receives their money at the usual time: the employees at the end of the month, the workers in the middle of the following month, emphasized a company spokeswoman to the APA.

November wages and salaries, as well as Christmas bonuses, are expected to be processed through the Insolvency Compensation Fund in January. About 3,600 employees are affected by the insolvency. The company continues under a self-administration restructuring procedure. Creditors can register their claims until January 16 at the latest. The examination meeting was scheduled for January 24, and the vote on the restructuring plan for February 25. About 200 layoffs are still necessary.

Pierer Mobility Cut Numerous Jobs

Already in the first half of the year, the parent company Pierer Mobility cut 373 jobs and shortly afterwards another 120 at KTM Research & Development GmbH. At the end of November, Pierer Industrie AG initiated a European restructuring procedure - a new pre-insolvency procedure. Shortly thereafter, KTM AG and its two subsidiaries filed for insolvency. 250 of the more than 3,600 employees have already been laid off. Production in Mattighofen has been at a standstill since mid-December.

Operational Interruption is Coming

In January and February, there will be an operational interruption - with wage and salary cuts - due to high inventory levels. KTM has about 130,000 motorcycles in stock, some of which are not expected to comply with the Euro5+ emission standard applicable from next year. According to creditor protection associations, KTM has accumulated debts of at least 1.8 billion euros, of which a large part of around 1.3 billion euros is said to affect banks.

As Pierer AG announced on Friday afternoon in a press release, it has submitted the restructuring plan according to the European restructuring regulation. "Pierer Industrie AG thus has two years to raise the liquid funds to repay the above-mentioned bonds and promissory note loans. Financing sources are both inflows of funds from the shareholder level and also from a profit participation right concerning the sale of shares in Leoni AG. Further funds can also be generated through the strategic networking of SHW AG (Germany) and Pankl Racing Systems AG (Austria), subsidiaries of Pankl AG. This can lead to a (partial) disposal of participations", says Pierer AG.

(APA/Red)

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