KTM before restart: Creditors are waiting for a renovation allowance for 525 million euros

KTM before restart: Creditors are waiting for a renovation allowance for 525 million euros

Mattighofen, Österreich - KTM AG is facing a crucial moment in your company history. On June 14, 2025, employees receive a payment for a 30-hour week, while production in the Mattighofen and Munderfing locations stands still until the end of July. KTM has worked massively in liquidity in the past few weeks and has secured 600 million euros for comprehensive renovation. These efforts are part of a renovation plan that is still waiting for the final confirmation. The creditors, who claim a total of 1.8 billion euros, have to wait for their money. Krone reports that the confirmations of the renovation plans have already been made by the regional court Ried, but the legal status of these decisions is still pending.

On May 22nd, KTM boss Gottfried Neumeister announced that the Indian motorcycle manufacturer Bajaj is ready to provide the financing for the renovation plan. Overall, the final amount for the renovation is 525 million euros. An important turn in this process is that many creditors have already issued 70 percent of their claims to ensure the continued existence of the company. Nevertheless, the situation remains tense, since objections can be submitted until the post task in the respective sender location. No objection had been received by June 13, and the legal force is expected to occur next week. After this point in time, the creditors should receive their repayments within two weeks if everything goes according to plan.

renovation and challenges

The economic crisis of KTM has intensified since autumn 2024 when a massive liquidity requirement occurred. 1000PS describes how the high debts and the decline in sales figures, which fell from EUR 2.7 billion to 1.9 billion euros, the company brought into a critical location. In November 2024, a judicial renovation procedure was initiated, which recently included a crucial assembly of creditors. There, 1,170 creditors, including banks and suppliers, presented their claims and offered KTM to repay 30 percent of the debts.

The challenges for KTM are immense. CEO Stefan Pierer resigned in January 2025, and Gottfried Neumeister took over the operational responsibility. In the meantime, Bajaj Auto secured the partial start of production in March 2025, but the production had to be interrupted again due to the lack of delivery parts. The current situation stipulates that the company gradually grabs production by summer 2025 to regain trust among customers and dealers. Alpine motorcycle emphasizes that with the completion of the renovation process in May 2025 KTM would be debt-free and the chances of a successful restart are good, especially since the demand for KTM motorcycles is still high.

Future view

Despite the renovation challenges, there are positive signals for KTM. As of 1000PS , the interest of potential investors such as Bajaj and Cfmoto shows that there is a way out of the crisis. The focus is now on the core brands KTM, Husqvarna and Gasgas, while Pierer Mobility AG plans to withdraw from the lossy bicycle and e-bike business. The main focus is to secure the location and jobs, with the new corporate management has the challenge of regaining trust in the industry.