KTM-Bankruptcy Affects More Companies

Following the KTM bankruptcy, restructuring proceedings without self-administration were opened on Tuesday over the assets of the Pierer Mobility subsidiaries Avocodo GmbH and Pierer E-Commerce GmbH at the regional courts in Linz and Ried. A total of around 150 employees and more than 120 creditors are affected. This was reported by AKV (Alpine Creditors Association) and Creditreform as well as KSV1870.

KTM Bankruptcy: Continuations Planned After Subsequent Bankruptcies

Avocodo, founded in 2000, generated more than 80 percent of its revenue from services - operation and maintenance of dealer systems, websites and customer portals - to the insolvent KTM AG and KTM Research & Development GmbH. 125 employees and more than 75 creditors are affected. AKV and Creditreform list liabilities of 3.3 million euros, including liabilities to affiliated companies of around 1.1 million euros. Assets exist with a liquidation value of around 1 million euros, according to the AKV.

Pierer E-Commerce, founded in 2001, is responsible for the online distribution and digital marketing of the products and services of the Pierer Group, primarily a general contractor for KTM AG and generates 96 percent of its revenue through this company, according to KSV. The bankruptcy affects 25 employees and around 45 creditors. Liabilities of around 4 million euros are known, the amount of assets is currently unclear.

The continuation of both companies is planned. According to information in the opening application of Avocodo, a continuation is also economically feasible from the ongoing operation. External investors have already shown interest in participating. Creditors are offered a quota of 20 percent, payable within 24 months from acceptance of the restructuring plan, but not before its confirmation becomes legally effective. A 20 percent restructuring plan is also offered to the creditors of Pierer E-Commerce. The quota is to be financed through the continuation as well as through subsidies from third parties.

(APA/Red)

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