KTM before rescue: Investors are behind the restructuring plan!

KTM before rescue: Investors are behind the restructuring plan!

KTM AG, Europe's largest motorcycle manufacturer, has been able to stabilize itself again in a critical phase of its company history. After a long period of trepidation and the threat of bankruptcy, the creditors have agreed to a restructuring plan that will ensure the continuation of operations. As oe24 reported, KTM was facing a financial crisis as it failed to repay 65 million euros by April 19th. As a result, Dabepo Holding, which manages Stefan Pierer's shareholder rights, had the shares seized.

In order to secure liquidity, a total of 548 million euros must be deposited with the restructuring administrator by May 23, 2025 at the latest. The difficulties in raising the necessary money became clear: the debts of KTM AG and its subsidiaries have grown to 2.235 billion euros since the bankruptcy declaration at the end of November 2024. According to Industrie Magazin, around 90 percent of creditors have approved the restructuring plan, which is a positive sign for the company's future.

Continued operations secured

On February 25, 2025, the creditors unanimously approved the restructuring plan at a crucial meeting. Around 100 people were present at this meeting, including creditors and their representatives, as well as KTM management. The restructuring administrator Peter Vogl confirmed that 50 million euros will now flow from an expanded circle of shareholders, which reduces the risk for creditors and increases confidence in the restructuring process. However, it remains unclear where the remaining funds will come from to achieve the full renovation quota. Strategic investors, including Bajaj, could play an important role here, according to Motorrad Online.

Creditors' approval came mainly from one large and a few smaller investors. The financial stabilization of KTM AG continues to represent a major challenge, as the high debt burden represents a significant risk for future development. The credit protection association KSV1870 assesses the decision to approve it positively and sees the investor entry as economically sensible. The outcome of the restructuring plan will be confirmed by the court in early June 2025, which will further shape KTM's future direction.

Production and jobs

In order to gradually ramp up production again, an additional 150 million euros are needed. The parent company Pierer Mobility plans to fully utilize the four production lines within three months. It is important to note that around 1,800 employees worldwide have lost their jobs since the crisis began. The parent company's share price has doubled since the bankruptcy became known. But the challenges remain: repaying creditors and restoring a stable company profile are now essential for KTM's future.

The next few weeks will be crucial for KTM. The company must provide the necessary financial resources by the end of May to finally avert bankruptcy and resume full production.