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KTM after bankruptcy: Production starts in March – hope for 1,800 jobs!
KTM is facing restructuring after bankruptcy. Creditors agree to plan with 30% repayment. Production is scheduled to ramp up by June 2025.
KTM after bankruptcy: Production starts in March – hope for 1,800 jobs!
In a dramatic turnaround on February 25, 2025, KTM AG won the decisive race for its future: the creditors approved the company's restructuring plan in the courtroom in Ried im Innkreis. The result came after almost five hours of intensive negotiations, during which 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, creditors will be promised a one-off payment of 30 percent of their claims totaling 548 million euros by May 23, 2025 at the latest, which brought relief throughout the motorcycle industry, as the Oberösterreichische Nachrichten reported.
KTM's corporate crisis began when the company filed for bankruptcy on November 29, 2024, caused by management errors and overproduction of around 250,000 motorcycles since 2022. After the bankruptcy, serious financial turmoil ensued, accumulating debts of over 2 billion euros. Many creditors, especially banks that had significant claims, were initially skeptical. But ultimately a rethink took place and the banks also agreed to the restructuring plan, as Motorrad Online reported. The first 50 million euros will flow from the extended circle of shareholders, in particular from the Indian manufacturer Bajaj, which has been a partner of KTM since 2007, in order to gradually restart production by mid-March 2025.
The challenges and prospects for improvement
KTM AG needs an additional 100 million euros by the end of March to keep the production facilities largely stable in April and May, while over 1,800 employees inside and outside Austria have already lost their jobs. The restructuring plan calls for a clear strategy and the deadline for available funds should provide a more comprehensive picture of the company's financial health by the court date in early June 2025. KTM intends to return the four production lines to full capacity by June 2025, which would represent a significant step towards financial recovery.