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Applying for an “ initiation of judicial restructuring proceedings with self-administration ” seems to indicate what many had speculated for months , that KTM AG are in much greater financial trouble than initially suggested .
The move has been seen as a way for the Austrian based company to ward off bankruptcy and the total collapse of the famed motorcycle manufacturer while things have begun to move very quickly , even for parent company Pierer Mobility .
The initial announcement , despite prior speculation suggesting much earlier , was made in October with the number of members on the board of directors being cut from six to two . Since then , hundreds of employees have been laid off and a proposal to halt production was put forward , a move seen as a forced way to move thousands of bikes sitting in showrooms and generate some muchneeded cash .
The announcement of administration was made at the end of November revealing the true extent of the financial situation , something much worse than first thought , with an estimated debt of around four billion Australian dollars , a figure that many financial experts suggest is much higher than anticipated and some saying “ they can ’ t see a way out ” for KTM with it being the “ largest insolvency in
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