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Where does the money come from to pay them back 100%?
You said the bankers get 100% period.
Break Rogers contract?
I want to frame this comment and put it on my wall.
Sorry I've never heard of the guy before, to my untrained eye he seems to be a random YouTuber business coach, could you share what makes you trust him on this matter?
Looking forward to your answer with a meme or a Pantera music vid, in which case I'll file this under "algorithm-fueled confirmation bias".
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Roger de Coster?
Of course, who else could it be lol
This is one of the things that is confusing is the timeline, well that and the slew of misinformation and amateur European economic lawyers. Do the banks/creditors want the 30% NOW, or over time? Are they hoping to get 100% over time? I doubt if the banks called up any of us and wanted us to pay off all our debts NOW it would be very easy for any of us. I am assuming this is how the shit hit the fan, KTM was missing payments and payroll, and everybody started piling on. Even if the 30% is NOW, that is $900M from the $3B which is huge for a company KTM's size. It seems this has all gone too far for the firm to reestablish as it once was, unpaid and obviously disgruntled workforce, 300,000 unsold bikes, pissed off dealers, and of course the debt. What a shit show.
He seems pretty convinced that Bajaj will throw a ton of good money after bad to bail PMG out. I have a hard time understanding how that will benefit Bajaj, who makes their money selling low-tech, high volume entry level vehicles to the developing world. What interest would they have in spending billions to take over a company with an unsustainable business model of selling small volume runs of high tech racing vehicles that require a huge investment in racing and marketing to move? KTM was using Bajaj to produce what Bajaj does best. I don’t see how taking over KTM would benefit them. KTM did one helluva job of creating a cult of followers that want to stay on the cutting edge of racing technology. I don’t understand why a company like Bajaj that is built on a completely different business model would want to go down that road.
6 months ago Pierer had € -106 cash and € 209 million undrawn committed credit lines, I'd guess they blew through their credit, and have no cash to pay back creditors.
The only thing they have of value is stock (190,000 bikes), plant and equipment, no way banks/creditors could get 30% NOW, unless the business is sold. More likely the 30% is calculated on the sale of the 190,000 bikes they have in stock, €5,000 x 190,000 = €950,000,000.
It’s only a promise to pay 30% within 2 years. That is all they will get and the rest will be forgiven .
So KTM used a line of credit to produce more bikes than they could sell......
MotoGP prob killed the KTM we all know and some of us love. Should have stayed in the dirt.
Yes, and 30% is more than they would get in case of liquidation, at least that is what has been presented in court at the first hearing.
If restructuring plan is agreed but then fails, they go into bankruptcy and liquidation, so there is still that.
Spoonguy (and anybody interested), you might find this short explainer, in english, quite useful :
https://www.usp.gv.at/en/themen/veraenderung-aufloesung/insolvenz/weite…;
30% within two years will be tough. Then tje 70% still has to be paid eventually?
I’m thinking the $5k a unit margin is pretty strong esp if they are rebating.
They have to convince the creditors and administrators that they will be able to complete the proposed re-structuring plan, which requires at least 30% of the debt to be repaid within 2 years. If they are unable to get the proposed plan accepted, the company will likely go into liquidation. If the plan is accepted and there is a subsequent default the company goes into liquidation. If the plan is accepted and they successfully complete the plan the residual debt, presumably 70%, is forgiven.
He seems pretty convinced Bajaj would throw money at the brand because he said there were multiple attendees to the insolvency hearing that pledged an interest in the brand long-term, included Bajaj. And Bajaj would seemingly have an inside track to managing ownership, already owning a significant portion of the company, as well as being one of their largest creditors.
Pit Row
Indeed it has been reported after the December hearing that Bajaj is one the investors ready to inject a total of 700 millions.
Bajaj already owns over 37% of PMG.
The process, as I understand it, is in the early stages and the Austrian government is still allowing SP/KTM to “self-manage” the situation. If that doesn’t work to the governments satisfaction, they’ll install their own “management team” in regards to restructuring and that would side-line SP. At that point, the government could take over and assign someone form the outside to not only run the necessary “re-organizing” of the bail-out…but, they could reassign totally new management.
I’ll say this, again…
I’m quite sure the Austrian government has a strongly held interest in keeping KTM “Austrian”.
3 screen caps, more complete informations here, if you want to stop guessing about the process everything is explained here https://www.usp.gv.at/en/themen/veraenderung-aufloesung/insolvenz/weite…
Of course it is in the interest of the court to keep KTM in Austria. But the creditors also have to agree to keep KTM Austrian, and the court is ultimately there to facilitate an agreement between the parties,
Is Pierre in a position to leverage any of his personal wealth or is it all tied to PMG?
I would not say that's the interest of the court, the court has no interest in the cases.
Sure that's the interest of the Austrian government to keep jobs in Austria but how much power they have over this remains to be seen. They'll probably push to obtain guarantees in the restructuring plan about a certain number of jobs to stay in Austria, but this is a private company, and I would guess a majority of private debtors.
Guessing they could get some influence if some creditors holding a significant part of the debt are publicly owned or backed or if the state is part of their board (I must say I have no info whatsoever about this but the list of creditors could be made public at the second hearing in 3 weeks).
It is in the interest of the court. That’s what the insolvency process is for: to provide enough legal protection to a company to have a potential escape route for financial issues in hope of ultimately saving jobs.
Clearance sale coming. I can't wait to see that list. Is it just 24 models, 25 as well? What about Huski and GAS GAS?
I almost pulled the trigger on a 25 TC 300 Heritage. I'm glad that I waited.
Definitely not my field but at a basic level I would say what you describe is more the the role of the court, its "raison d'être".
A court has no interest in the outcome of the processes it handles, it is here to ensure the law is followed, the owners along with administrator design a restructuring plan, the creditors decide the outcome.
38% of PMG is currently under Austrian ownership, it could well end up less than that, IMHO the court has no say in that (besides applying the law).
I think we are talking around each other a bit, but suffice to say we agree the court will provide KTM fairly exhaustive time and resources to prove it can self govern or find alternative financing, if it is at all a possibility.
-10% didnt get bikes moving but sure when right discount comes bike start moving. People are not paying higher prices than bike from Japan just because KTM wants.
Post a reply to: KTM to file for Bankruptcy/ Self Restructuring on Friday