KTM and BayWa in crisis mode: rescue plans or downfall?

KTM and BayWa in crisis mode: rescue plans or downfall?

Things are getting exciting in the corporate world of Germany and Austria: KTM, the renowned motorcycle manufacturer, is facing a critical vote on its restructuring plan, which is scheduled to take place on February 25, 2025. Creditors have filed claims totaling almost 2.4 billion euros, with a significant portion of 1.6 billion euros already being recognized by the courts, as reported krone.at reported. With every hour the pressure on the restructuring administrators to convince the creditors in order to avert the impending insolvency increases.

Renovation in focus

Meanwhile, BayWa AG, Germany's largest agricultural trader, is struggling with high debts and is betting everything on a comprehensive restructuring by 2027. According to tagesschau.de An agreement was reached with the major shareholders and creditor banks, which should be legally binding by the end of April 2025 at the latest. A key component of this plan is a capital increase of 150 million euros, in which important participants such as Bayerische Raiffeisen-Beteiligungs-AG will participate. However, the challenges continue: BayWa has to renegotiate its debts of over five billion euros. These negotiations could drag on until the end of April, with creditors willing to remain silent until then.

In addition, BayWa plans to divest itself of its 47.5 percent stake in the Austrian RWA and sell further investments in order to stabilize its financial situation. Despite the drastic measures, including the elimination of 1,300 jobs, the pressure on companies remains high to secure their future and make the brand profitable again. Both companies are at a turning point, and the coming weeks will be crucial.