KTM AG Improves Debt Terms After 100-Plus Creditors Press Insolvency Plan
Updated
Updated · Bloomberg · Jun 20
KTM AG Improves Debt Terms After 100-Plus Creditors Press Insolvency Plan
2 articles · Updated · Bloomberg · Jun 20
Summary
More than 100 creditors joined a video call to challenge KTM AG’s insolvency plan, and the pressure pushed the Austrian motorcycle maker to offer better debt terms.
The creditor group was unusually fragmented—ranging from investors in small German towns to Chinese banks and European pension funds—reflecting the mixed holder base of Schuldschein debt.
That market structure complicates restructurings in Germany and Austria because any change to Schuldschein terms requires unanimous lender approval and lacks a central agent to negotiate for creditors.
As higher energy costs and tougher competition strain Mittelstand companies, the once-safe-haven Schuldschein market is increasingly exposing lenders and borrowers to messy insolvency risks.