KTM has the money it needs to emerge from bankruptcy protection, the company said in a statement released just before the court-imposed deadline to raise the money needed to continue operations.
“As announced, the creditors of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH approved a restructuring plan quota of 30% on February 25, 2025, payable by May 23, 2025. The total amount required to finance the quota under the three restructuring plans amounts to approx. EUR 600 million,” PIERER Mobility AG said in a statement posted in its corporate newsroom.
“PIERER Mobility AG and KTM AG have received financing commitments, subject to the execution of the requisite agreements, which will ensure that the quota payments to fulfill the restructuring plans of KTM AG, KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH can be fulfilled on time by May 23, 2025.”
KTM ceased production and asked for court-supervised self-restructuring proceedings after debts ran to nearly two billion Euros and unsold motorcycle inventories were reported in the range of 130,000 units. Since then, an Austrian court has approved a restructuring plan in which creditors would receive 30 percent of the money due to them.
Bajaj, the Indian conglomerate that is already a partner of KTM, last week announced that it had secured a loan for just over 600 million Euros, leading to speculation that the company would take a greater stake in KTM operations. However, the company did not specifically state that in its announcement.
KTM has said it plans to continue MotoGP World Championship activities.
