Pierer Mobility AG's shares plummeted after its KTM AG motorbike unit announced its intention to file for self-administered insolvency in Austria.
The company stated that it was unable to meet a significant financing requirement, which amounted to a "very high three-digit million euro" sum.
KTM AG will now enter into negotiations with creditors over the next 90 days to establish a reorganization plan.
This development raises concerns about the financial stability of Pierer Mobility and its position in the competitive motorbike market.