KTM AG under pressure: application for bankruptcy and debts of 1.8 billion euros

KTM AG under pressure: application for bankruptcy and debts of 1.8 billion euros

The KTM AG, subsidiary of Pierer Mobility AG, submitted its bankruptcy application on November 29, 2024. This happened before the court in Ried im Innkreis, Upper Austria, and the financial data submitted are alarming. A debt of almost 1.5 billion euros is compared to an asset amount of only 317 million euros. The total amount of the liabilities amounts to around 1.8 billion euros, which many creditors, a total of around 1600, are concerned.

The main burden of debts meets KTM AG and its two sister companies, KTM Components and KTM F&E, which together owe around 1.3 billion euros to banks. In addition, suppliers are also affected, which are about 350 million euros, while open salaries and guilt notes make another 30 million euros.

renovation process and financial plans

As part of the bankruptcy application, KTM applies for a renovation procedure to be carried out on personal responsibility. The desired debt repayment rate is 30 percent, which is to be paid within two years of the approval of the renovation plan. The situation is complicated by an excess of 130,000 motorcycles, the value of which is estimated at around one billion euros.

KTM has a 90-day period that ends on March 1, 2025 to agree on a specific renovation plan with their creditors. In this critical phase, cooperation with the Indian partner Bajaj, who holds 49 percent of the shares, has become more important. Stefan Pierer, the CEO of Pierer Mobility, works closely with Co-CEO Gottfried Neumeister, an expert in numbers and finances that is used as key persons in the renovation.

The parent company Pierer Mobility has already announced that KTM should be reduced in the future. The details and design of this redimation is currently being discussed. According to the current information, there is a direct financing requirement that could move in the high three -digit million range. The development is pursued carefully by the public because it is crucial for the future of the company.