KTM before the rescue: Investors are behind the renovation plan!

KTM before the rescue: Investors are behind the renovation plan!

KTM AG, Europe's largest motorcycle manufacturer, has been able to stabilize again in a critical phase of its company history. After a long tremor and the impending bankruptcy, the creditors approved a renovation plan that ensures the continuation of the company. As reported oe24, KTM faced a financial crisis, since the repayment of EUR 65 million failed by April 19. As a result, the Dabepo Holding, Stefan Pierer's shareholders' rights, had the shares.

In order to secure the liquidity, a total of 548 million euros must be deposited with the renovation recipient by May 23, 2025 at the latest. The difficulties of raising the necessary money became clear: the debts of KTM AG and its subsidiaries have grown to 2.235 billion euros since the bankruptcy report at the end of November 2024. According to the [Industry Magazin] (https://industriemagazin.at/automotive/ktm-ag-gerettet-glaeubiger voted-up-to-production plan- zu-produktet- 2025-neu/), around 90 percent of the creditors have agreed to the renovation plan, which is a positive sign of the future of the company.

continuation of the company secured

On February 25, 2025, the creditors unanimously approved the renovation plan in a crucial session. In this session there were around 100 those present, including creditors and their representatives, as well as the KTM management. The renovation recipient Peter Vogl confirmed that 50 million euros will now flow out of an extended shareholder group, which reduces the risk for the creditors and strengthens trust in the renovation process. However, it remains unclear where the remaining means will come from to reach the full renovation rate. Strategic investors, including Bajaj, could play an important role here, according to the motorcycle online.

The consent of the creditors mainly came from a large and some smaller investors. The financial stabilization of KTM AG continues to be a major challenge, since the high debt burden is a significant risk of future development. The KSV1870 credit protection association evaluates the decision to consent positively and sees the entry into investor as economically sensible. At the beginning of June 2025, the outcome of the renovation plan will confirm what will further shape the future direction of KTM.

production and jobs

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

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