KTM Involves Citigroup In Struggling To Rise From Depravity

JAKARTA - A well-known motorcycle manufacturer from Austria, KTM in early December announced that it will enter the "self-administration" phase or self-management for 90 days to undergo the restructuring process as a final step to avoid bankruptcy.

A recent report from Austria also states that workers have not received a November salary and a Christmas bonus.

In an effort to revive the two-wheeled sector, KTM together with its owner Pierer Mobility Group (PMG) were recently rumored to have involved one of the world's largest investment banks, Citigroup, to assist its business reorganization and restructuring.

Launching Visordown, Friday, December 20, based on a Markets Insider (MI) report that KTM is currently in talks with various investors, both existing and new. In addition, KTM is also looking for strategic investors, namely partners who can provide knowledge and experience other than capital. MI also reports that the Global Markets Citigroup Europe AG has been appointed to assist the process in "structured, transparent, and efficient for the benefit of all stakeholders."

Furthermore, according to MI, an investment process will be carried out requiring related parties to subscribe to the required increase in cash capital or PMG financial instruments. The funds obtained will be used to strengthen the group, with KTM as the main target of funding.

It is hoped that by involving big names such as Citigroup, KTM can overcome this difficult situation and return to the right path.