PIERER Mobility AG
November Corporate Update
Recently MCNews.com.au gave you the most comprehensively detailed and accurate picture of the financial situation facing Pierer AG, that is, KTM and it is associated brands to you and me. I urge you to click that underlined link above, and digest it, so we don’t have to rehash it all via an introductory piece here.
Overnight, November 12, PIERER Mobility AG issued an update to financial markets, in line with their financial reporting responsibilities, that the company was working to secure bridge financing “in the three-digit million € range”.
Thus the Executive Board is in discussions with core shareholder Pierer Bajaj AG, and existing financial creditors, for a standstill agreement for the duration of these discussions as basis for the financial restructuring.
The statement also noted that the discussions were at an early stage and thus it would not be yet possible to make any concrete statements about any anticipated outcome of the negotiations or size of additional financing.
The statement also noted that an even more far-reaching operational restructuring is being driven forward with the aim of reducing inventories at both KTM AG and the dealer level to an economically sustainable level by significantly reducing production volumes and overheads to create that basis for sustainable competitiveness and profitability.Â
Again, for more detailed background, I urge you to read the piece we published last month that detailed some of the circumstances that has led to these difficulties, and how the company aims to resolve them in order to get back on a more sound financial footing.
Fingers crossed they come out the other side even more ‘Ready To Race’.
