KTM to file for Bankruptcy/ Self Restructuring on Friday

GrapeApe
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2/19/2025 12:15pm
wrc777 wrote:
Shutting down the race team midway through the summer would not save that much money, and they would potentially lose money from sponsors like Red Bull...

Shutting down the race team midway through the summer would not save that much money, and they would potentially lose money from sponsors like Red Bull or Rockstar. There have been no claims KTM NA is losing money either. Why would you risk screwing up a division that is still making money?

GrapeApe wrote:

I have a feeling that claim will age as well as the others. But who knows a lot can change in the next couple of weeks.

wrc777 wrote:

Shutting those riders down in the middle of the season will mean no top riders will sign with them for a very long time. 

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

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Team403
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2/19/2025 12:24pm

If they completely dissolve or shelf the HUS and GG brands which is possible what’s the point of further marketing? 

 

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NSP139
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2/19/2025 12:25pm
GrapeApe wrote:

I have a feeling that claim will age as well as the others. But who knows a lot can change in the next couple of weeks.

wrc777 wrote:

Shutting those riders down in the middle of the season will mean no top riders will sign with them for a very long time. 

GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

Ya I still see cars at there HQ in Murrieta and AEO has very few 2025 on the floor!

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MxAddic
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2/20/2025 5:22am
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

18

The Shop

wrc777
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wrc777 wrote:

Shutting those riders down in the middle of the season will mean no top riders will sign with them for a very long time. 

GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

NSP139 wrote:

Ya I still see cars at there HQ in Murrieta and AEO has very few 2025 on the floor!

2025 will be a limited production year since they have not built any since what November or October? In fact I bet all the 2025s have already shipped out of Austria and they will be on 2026 when they restart production. The only possible snag there is they could be sitting on black frames, and I think 2026 will be orange.

MxAddic
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NSP139 wrote:

Ya I still see cars at there HQ in Murrieta and AEO has very few 2025 on the floor!

Maybe they are reluctant to take on any new inventory? I would be.

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NSP139
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2/20/2025 5:46am
NSP139 wrote:

Ya I still see cars at there HQ in Murrieta and AEO has very few 2025 on the floor!

MxAddic wrote:

Maybe they are reluctant to take on any new inventory? I would be.

I'm sure they are! I only mentioned this because some are saying dealers are being forced to take on inventory I've never seen their inventory so low and they have more 24s than 25 nobody's buying bikes right now KTM shot their reputation in the foot!

GrapeApe
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2/20/2025 6:21am
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

Man that sucks that KTM NA recently told your dealer they must take on more inventory than required by pre-existing agreements and when your dealer said no they pulled his dealership. Who was the dealer? 

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Snapper
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2/20/2025 6:40am
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

So let me get this straight. Personal insults are fine when you're the one dishing them out?

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endurox
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2/20/2025 7:59am Edited Date/Time 2/20/2025 8:00am
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

GrapeApe wrote:
Man that sucks that KTM NA recently told your dealer they must take on more inventory than required by pre-existing agreements and when your dealer said...

Man that sucks that KTM NA recently told your dealer they must take on more inventory than required by pre-existing agreements and when your dealer said no they pulled his dealership. Who was the dealer? 

All the dealers need to say no to more inventory. Not like people are waiting in line to take on a KTM dealership. Local place here is stuffed with orange and GG. 

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Team403
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2/20/2025 8:27am Edited Date/Time 2/20/2025 8:28am

Getting close to the 25th surprised that we are not seeing more info floating around.

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cmunn
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2/20/2025 10:23am

Lace your work boots up

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avidchimp
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2/20/2025 11:38am
cmunn wrote:

Lace your work boots up

If anyone would know what's going on at the dealership level, it would be you. 

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charliemiles
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2/20/2025 12:23pm

must not be doing too bad gas gas announced united in dirt festival again for this yearScreenshot %281%29

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2/20/2025 1:57pm Edited Date/Time 2/20/2025 1:59pm

Pierer Industrie AG has restructuring plan approved ahead of crucial KTM vote

https://www.crash.net/motogp/news/1063714/1/pierer-industrie-ag-has-restructuring-plan-approved-ahead-crucial-ktm-vot

 

"Pierer Industrie AG has had its restructuring plan approved by creditors in Austria, which could be the first step towards KTM’s survival ahead of a crucial vote.

The Pierer Mobility Group has been embroiled in a financial crisis since late last year which forced it into self-administration in order to stave off bankruptcy.

 

Much of its problems stem from debts accrued by KTM AG, which are reported to be above €2 billion.

KTM will face a vital vote on its restructuring plan next Tuesday, which - if successful - would see it pay back 30% of its total debts to creditors by the end of May.

Originally, the timeline for this was set for within two years. However, investment from over 20 parties to the tune of up to €900 million has allowed this timeline to be shortened.

According to ORF, around €600 million is needed to meet this repayment quota while €150 million is required to end KTM’s production freeze at its Mattighofen base.

The hope is that it can restart manufacturing in mid-March.

On Thursday, Pierer Industrie AG had its restructuring plans accepted in a hearing at the Wels Regional Court.

Pierer Industrie AG applied for a pre-insolvency policy known as a European restructuring procedure.

The company was approved for the financing of just under €250 million it was seeking, which will be repaid in full.

The current plan will see it pay 68.69% of that money back by the end of 2026 and the rest by the end of the following year. This will include agreed interest on the loan.

This was the first European restructuring procedure initiated in Austria and was described as a “win-win for debtors and creditors alike” by Gerhard Weinhofer, the managing director of Creditreform.

The Alpine Creditors Association (AKV) sees this as being potentially the first step towards the restructuring of KTM being successful."

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Team403
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2/20/2025 2:22pm

So we good?

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APLMAN99
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2/20/2025 2:32pm
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

Which dealer?

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2/20/2025 2:37pm
wrc777 wrote:
Shutting down the race team midway through the summer would not save that much money, and they would potentially lose money from sponsors like Red Bull...

Shutting down the race team midway through the summer would not save that much money, and they would potentially lose money from sponsors like Red Bull or Rockstar. There have been no claims KTM NA is losing money either. Why would you risk screwing up a division that is still making money?

GrapeApe wrote:

I have a feeling that claim will age as well as the others. But who knows a lot can change in the next couple of weeks.

Pit Bierer addressed this in a very recent interview. The insolvency administrator (not a motorcyclist) originally proposed shutting down the racing activities. It was explained to him that the race teams are a combination of vital marketing and R&D. He apparently understood that well and agreed they needed to continue. After the proceedings the new investors will make those types of decisions. I highly doubt they consider something as stupid as pulling the plug mid-season. 

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yak651
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2/20/2025 2:45pm
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

APLMAN99 wrote:

Which dealer?

I’m guessing this question will be conveniently ignored…

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Beagle
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2/20/2025 2:55pm Edited Date/Time 2/20/2025 3:50pm
Team403 wrote:

So we good?

Court approved the plan, I guess it means something like it covers everything that it has to, legally. That plan will be put to the vote of the creditors next Tuesday. PMG need the vote of creditors owning over 50% of the debt for the plan to go ahead.

We'll see if creditors would be happy enough to get 30% of their money in 3 months or if they'd rather steer PMG into bankruptcy. 

Suppliers might not be overjoyed to forfeit some of their due but PMG bankruptcy would likely be catastrophic for a good number of them. It's all about the banks owning the majority of the debt, do they think they can get more money after liquidation (and unlike suppliers, PMG bankruptcy would not really affect them)?

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JazzyJJ
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2/20/2025 2:55pm
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

APLMAN99 wrote:

Which dealer?

trust me bro

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PTshox
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2/20/2025 2:58pm
GrapeApe wrote:
I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on...

I agree, I think the claim that they are shuttering the Rockstar team mid-year is false. Just like the claim that KTM is forcing inventory on its dealers under threat of pulling their dealer agreements, and the claim that there are only a few employees left at KTM NA. Someone is embellishing.

 

MxAddic wrote:
The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where...

The claim of them forcing inventory on dealers is not false. My dealer told them to pound salt and no longer sells them. If you where only half as smart as you think you are you really would be something.

This board is way better when people play nice.

I ve been attacked for zero reason except ego as have others. It doesn't need to happen. It doesn't help make this board better - it makes it worse. 

Sharing info and options is what this is about. But... be NICE to each other for fook sakes. 

10
Beagle
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2/20/2025 4:24pm

The restructuring administrator appointed by the court reports that in case of liquidation creditors would get 14.9%, about 1% higher than previous estimate, still only half that what the restructuring plan offers.

Interestingly the plan devised by the American hedge fund would simply not be legal under Austrian law so one more reason to be optimistic for Tuesday.

https://m.gpone.com/en/2025/02/18/motogp/ktm-ag-preparing-to-resume-pro…

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hartebreak
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2/20/2025 5:31pm

Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of this that just isnt making sense, and I don't hear anyone talking about is just how KTM expects to pay off the new debt in 2 years....

 Its not like its a screaming hot market right now, even if KTM was financially solvent, and none of this bad news was putting a black cloud over the brand, the market still sucks. 

I just don't see how the bean counters can project enough sales to not only keep the doors open, but also now pay off all this new debt that they are stacking up during this bailout/restructure. 

 

Its like the people who have $50k in credit card debt, then refi their home, pay the cards off only to max them out again a year later and now they have the new higher mortgage AND the new credit card debt. Now stack on top of that lower income, and its a recipe for disaster. 

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Team403
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2/20/2025 5:58pm Edited Date/Time 2/20/2025 5:59pm
hartebreak wrote:
Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of...

Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of this that just isnt making sense, and I don't hear anyone talking about is just how KTM expects to pay off the new debt in 2 years....

 Its not like its a screaming hot market right now, even if KTM was financially solvent, and none of this bad news was putting a black cloud over the brand, the market still sucks. 

I just don't see how the bean counters can project enough sales to not only keep the doors open, but also now pay off all this new debt that they are stacking up during this bailout/restructure. 

 

Its like the people who have $50k in credit card debt, then refi their home, pay the cards off only to max them out again a year later and now they have the new higher mortgage AND the new credit card debt. Now stack on top of that lower income, and its a recipe for disaster. 

I mean how hard is to come up with a BIL in 2.5 years?🤞🏼 I assume interest is still accruing at an alarming rate as well?🤔

APLMAN99
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hartebreak wrote:
Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of...

Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of this that just isnt making sense, and I don't hear anyone talking about is just how KTM expects to pay off the new debt in 2 years....

 Its not like its a screaming hot market right now, even if KTM was financially solvent, and none of this bad news was putting a black cloud over the brand, the market still sucks. 

I just don't see how the bean counters can project enough sales to not only keep the doors open, but also now pay off all this new debt that they are stacking up during this bailout/restructure. 

 

Its like the people who have $50k in credit card debt, then refi their home, pay the cards off only to max them out again a year later and now they have the new higher mortgage AND the new credit card debt. Now stack on top of that lower income, and its a recipe for disaster. 

If they can reduce costs enough to improve their EBITDA, then they probably have a chance to refinance with either different lenders or perhaps even their current ones. They likely need to be able to present a cogent plan on reducing costs while maintaining or increasing revenue, of course. If they achieve that plan there will probably be a fair amount of lenders who will renegotiate the terms into a longer loan. 

Maybe. 

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burn1986
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2/20/2025 9:41pm Edited Date/Time 2/20/2025 9:42pm

For the sake of the workers and the dealers, I hope they make it through this and get stabilized. Imo, the approval of the restructure plan is very good news.

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Motofinne
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2/20/2025 9:48pm
hartebreak wrote:
Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of...

Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of this that just isnt making sense, and I don't hear anyone talking about is just how KTM expects to pay off the new debt in 2 years....

 Its not like its a screaming hot market right now, even if KTM was financially solvent, and none of this bad news was putting a black cloud over the brand, the market still sucks. 

I just don't see how the bean counters can project enough sales to not only keep the doors open, but also now pay off all this new debt that they are stacking up during this bailout/restructure. 

 

Its like the people who have $50k in credit card debt, then refi their home, pay the cards off only to max them out again a year later and now they have the new higher mortgage AND the new credit card debt. Now stack on top of that lower income, and its a recipe for disaster. 

That has been my thoughts too the recent days. The timeline doesn't make any sense, i don't get how you come up with an Excel spreadsheet explaining that this would be theoretically possible 

1
2/20/2025 10:25pm

I’m still waiting on those close out prices to come. 

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Beagle
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2/21/2025 12:38am
hartebreak wrote:
Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of...

Ok lets say KTM gets a financial bailout, lets say the creditors agree to take 30%. Lets say they make it through this. The part of this that just isnt making sense, and I don't hear anyone talking about is just how KTM expects to pay off the new debt in 2 years....

 Its not like its a screaming hot market right now, even if KTM was financially solvent, and none of this bad news was putting a black cloud over the brand, the market still sucks. 

I just don't see how the bean counters can project enough sales to not only keep the doors open, but also now pay off all this new debt that they are stacking up during this bailout/restructure. 

 

Its like the people who have $50k in credit card debt, then refi their home, pay the cards off only to max them out again a year later and now they have the new higher mortgage AND the new credit card debt. Now stack on top of that lower income, and its a recipe for disaster. 

Here's how it works (if the plan is approved of course).

Since November they have gathered over 600-900M from investors (Bajaj, CFMoto, Pierer reportedly put 200M, new investors), they have sold or are selling some assets (MV Agusta, bicycles...) to generate some cash and reduce costs.

In their restructuring plan they offer to repay 30% of their 2B debt (600M) in 3 months (instead of the 2 years set by Austrian law). Rest of the debt is forgiven, there are no interests accruing anymore.

Then I guess the shopping spree is over, no more growth at all cost, no more acquisition fever, and they need to set realistic sales objectives to avoid overproduction (which are the main things that put them in this situation to begin with).

Investors willing to put hundreds of M think the plan is sound, now it's up to the creditors to vote for or against it. Latest report by the independent administrator appointed by court say creditors would recoup 50% less in case of bankruptcy, let's see how it goes on Tuesday.

7

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