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- Some creditors, led by Whitebox Advisors, oppose KTM’s restructuring plan and offer an alternative.
- The alternative plan envisages setting the existing equity capital to zero and enabling new financing.
- The decision on the restructuring plan will be made on February 25th, while creditors have filed claims of 2.2 billion euros
While on Friday during creditor meetings surrounding the bankruptcy of KTM and subsidiaries, there is apparently also slight optimism Resistance against the previous ones Restructuring plans of the insolvent Upper Austrian motorcycle manufacturer.
One group of lenders wants more money back, is resisting the planned restructuring and is proposing its own plan for better creditor prospects, writes the financial news agency Bloomberg.
A group of promissory note creditors of the KTM companies, which are in debt for billions of dollars, led by the US Hedgefonds Whitebox Advisors wants to offer lenders more than the 30 percent provided for in the company’s own proposal, Bloomberg quoted on Saturday from a lender presentation available to the agency. 30 percent is the minimum that KTM has to offer in its type of insolvency proceedings.
Silence from those involved
A representative for Whitebox declined to comment. A spokesman for KTM parent Pierer Mobility did not respond to emails and phone calls, the agency said. A representative of the company that prepared the presentation – Perella Weinberg Partners – also did not respond.
The group of creditors argues that Pierer Mobility required additional capital for KTM in order to turn the trend at the expense of the lender would go. These would have to “accept significant discounts”. Existing shareholders such as industrialist Stefan Pierer’s Pierer Mobility would be allowed to “buy into the company at a massive discount,” according to the presentation.
After Alternative plan the critical lender would the existing one The company’s equity was written down to zero. All creditors would be offered the opportunity to provide new financing themselves, although the creditor group is willing to secure the necessary financing, according to the presentation.
The providers of the new financing would 30 percent of the company’s equity received while 70 percent It is said that they would go to reinstated creditors. Existing shareholders would then have the opportunity to buy up to 70 percent of the equity from the reinstated creditors. Even creditors who decide not to participate in the new financing should receive “significantly better recovery rates”.
Crucial meeting in February
On Friday, creditors had claims amounting to around 2.2 billion euros registered, with the insolvency administrator according to AKV so far around 1.7 billion euros has recognized. The restructuring plan – i.e. the exact future of KTM – will be announced on February 25th voted on by the creditors.