It’s a depressing situation but a stark reality for one of the biggest motorcycle manufacturers in the world. KTM, one of motocross’ biggest industry supporters, who just won the MXGP and MX2 world titles this year with Jorge Prado and Kay de Wolf, plus a 250 East SX title with Tom Vialle and 450 AMA MX title Chase Sexton, has filed documents on Friday to begin insolvency proceedings in an Austrian court with debts amounting to 2.9 billion Euros.
This is according to motorcyclesports.net. “The insolvency involves KTM AG and its two subsidiaries – KTM Components GmbH and KTM Forschungs und Entwicklungs GmbH. While KTMAG’s filings report €1.8 billion in liabilities, the Alpine Creditors Association (AKV) estimates the combined debt of the three entities at €2.9 billion.
“There are approximately 2,500 creditors. Of this debt, KTM AG owes around €1.3 billion to banks, €365 million to suppliers, and €40 million in employee salaries.”
More here, including the prospect of job cuts:
KTM announced their restructuring this week.
