Pierer Mobility AG saw a significant drop in its shares, falling 45% to 6.9 Swiss francs ($7.8), after its KTM AG motorbike unit announced that it is filing for self-administered insolvency in Austria.

The reason for this decision is the company's inability to meet a substantial financing requirement, which is described as a "very high three-digit million euro" amount.

This decline in shares marks the largest daily decrease in the company's history, and it brings its losses for the year to 84%.

The financial difficulties faced by Pierer Mobility are attributed to a crisis in the European industrial sector and a lack of demand for motorbikes.

In response to these challenges, Pierer Industrie AG has requested that creditors extend the maturity of its debt, which amounts to nearly €250 million ($262 million).

The restructuring plan for KTM involves scaling down production and gradually reducing excess stock.

As a result, it is projected that over the next two years, Austrian sites will see a decrease in output of over €1 billion.