KTM is in dire financial straits right now. The company is billions of dollars in debt with an expensive race program chewing through funds and hundreds of thousands of unsold bikes piled up without buyers. This is what’s known in the business world as “bad,” but it’s been unclear up to this point just how bad. Now, though, we’re getting a clearer view: Actual legal documents demanding funding are coming through, and they’re looking bad for the motorcycle maker.
AKV Europe, a “creditors’ protection association,” has started releasing information about specific claims against KTM. The group claims that it’s seen 1,187 claims from creditors and 2,347 claims from employees — claims that total $2.28 billion. RideApart has some more details:
According to AKV’s latest statement, “So far, there have been 3,534 claims, namely 2,347 employee registrations and 1,187 insolvency creditors.” Broken down into monetary value, employees want 12,718,555.48 euros ($13,377,462.38 USD), while KTM AG’s creditors want 2,172,626,058.36 euros ($2,285,168,088.18). A further $200 million, give or take, is wanted from KTM Components GmbH and KTM Research & Development GmbH.
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AKV states a total of 23 potentials have come forward.
However, further pitfalls remain. “Numerous audits initiated have not yet been completed with regard to the size of the procedures,” states AKV, adding, “This concerns the assessment of the adequacy of a restructuring plan, the examination of the causes of insolvency and asset forfeitment as well as possible liabilities or challenges. In addition, an estimate of movable property was commissioned.” What this means is that in the process of auditing KTM’s books, things might be found out that further hamper KTM’s survival, as well finding new investors into the company.
With more claims expected and more investigations expected to reveal even worse news about KTM’s state, it’s really starting to look like the company as we know it could be no more. Maybe the name will stick around as a CFMoto subsidiary — the Chinese manufacturer already produces some KTM models — but its days as an independent manufacturer with its fingers in pies frorm Husqvarna, GasGas, and MV Agusta are looking numbered. Maybe this all could have been avoided if the company had thrown a couple bikes Ewan and Charley’s way.