KTM after bankruptcy: Production starts in March - hope for 1,800 jobs!

The KTM AG won the decisive race for their future in a dramatic turn on February 25, 2025: the creditors agreed to the company's renovation plan in the court in the Innkreis in the Innkreis. The result came after almost five hours of intensive negotiations, while those present, including the previous majority owner and boss Stefan Pierer, fought for the survival of the traditional brand. With the approval of the plan, the creditors are given a one -off payment of 30 percent of their claims of a total of 548 million euros by May 23, 2025 at the latest, which ensured relief in the entire motorcycle industry, as the Upper Austrian news reported.

The corporate crisis of KTM began when the company registered bankruptcy on November 29, 2024 by management errors and an overproduction of around 250,000 motorcycles since 2022. After the bankruptcy, there were serious financial turbulence, with debt of over 2 billion euros being accumulated. Many creditors, especially banks who had significant demands, were initially skeptical. But ultimately there was a rethink, and the banks also approved the renovation plan, as motorcycle online reported. The first 50 million euros flow from the extended shareholder group, especially from the Indian manufacturer Bajaj, who has been a partner of KTM since 2007 to gradually resume production by mid -March 2025.

The challenges and prospect of improvement

KTM AG will need an additional 100 million euros by the end of March to keep the production facilities stable in April and May, while over 1,800 employees within and outside of Austria have already lost their jobs. The renovation plan calls for a clear strategy and the period available is to enable a more extensive image of the company's financial health by the court in early June 2025. KTM intends to fully utilize the four production lines by June 2025, which would represent an important step towards Financial Recovery.