KTM before rescue: 525 million euros secured for the renovation!

KTM before rescue: 525 million euros secured for the renovation!

Mattighofen, Österreich - KTM, the renowned Austrian motorcycle manufacturer, reported bankruptcy in November 2024. In the middle of the financial turbulence, Bajaj Auto International Holdings B.V. promised to provide a loan of 450 million euros, while the parent company Pierer Mobility will contribute another 150 million euros. Thus, a total of 525 million euros are available to finance the creditor quota as part of the restructuring plans, reports Vienna.at .

KTM CEO Gottfried Neumeister expressed gratitude for the support of Bajaj and Pierer Mobility and emphasized the central role of the main plant in Mattighofen/Munderfing. The deadline for payment of around 600 million euros, which forms the 30 percent barquote in the bankruptcy proceedings, is May 23 at midnight. This financing commitment was confirmed by the renovation agent Peter Vogl, who emphasizes the need that the money will enter into the account of the insolvency administrator in good time.

debt and creditor

KTM faces massive demands: Around 2.2 billion euros result from the claims of 1,250 suppliers and banks as well as 2,600 employees. According to the KSV 1870 credit protection association, a total of 3,850 creditors have registered claims, of which around two billion euros have been recognized. The renovation plan provides for a corresponding bar quota to satisfy the creditors.

The financial support of Bajaj is not new. Since the bankruptcy application, the company has already made 200 million euros available to secure KTM's liquidity. Industry experts suspect that Bajaj may be interested in a majority takeover of KTM or Pierer Mobility. KTM currently belongs entirely to Pierer Mobility AG, which belongs to 74.18 percent of Pierer Bajaj AG, one of the largest vehicle manufacturers in India.

production and future prospects

Production in Mattighofen is currently still due to delivery problems, and the resumption of production is only planned for August. Meanwhile, excess stocks were sold on motorcycles. Gerhard Weinhofer from Creditreform sees the necessary debt aisle as an opportunity to make KTM future fit and to enable optimistic perspectives for the approximately 1,200 suppliers.

The strategic orientation with regard to the insolvency proceedings is under the supervision of an experienced administrator to keep control of the company and continue business operations. The aim of the maximum three-month procedure is to bring KTM back into the profit zone and to get the jobs, such as Creditreform explained.

The company has commissioned the US investment bank Citigroup to search for a potential investor to ensure additional support for the next phase of corporate renovation. Neumeister sees the secure financing as a positive signal for the future of the company and ends optimistically that the renovation plan can be transferred to the creditors in the second half of June.