(Bloomberg) — Shares of Pierer Mobility AG tumbled after the company said its KTM AG motorbike unit was filing for a self-administered insolvency in Austria.
KTM will be unable to cover a “very high three-digit million euro” financing requirement, according to a statement. The company will seek to agree with creditors on a reorganization in the next 90 days.
Shares slumped 45% to 6.9 Swiss francs ($7.8), heading for their biggest daily decline on record and extending a loss this year to 84%.
The company owned by entrepreneur Stefan Pierer and India’s Bajaj Auto Ltd. is facing financial strains due to a Europe-wide industrial crisis and lackluster demand for motorbikes. Its parent, Pierer Industrie AG, asked creditors on Monday to…
