In dire straits since late 2024, KTM obtained creditor approval of its restructuring plan on February 25, marking a major turning point for its future.
Pierer Mobility: a financial turnaround under great strain
Faced with a colossal debt of more than 2 billion euros, KTM had initiated a legal reorganization procedure with self-management in November 2024. The aim was to find a viable solution within 90 days to avoid outright bankruptcy. After an encouraging outlook, KTM / Pierer Group has now taken a decisive step towards financial recovery. The approval of the plan by the creditors provides for a partial repayment of 30%, i.e. 548 million euros, to be paid before May 23, 2025. Once this payment has been made, the court is expected to give final approval to the restructuring plan at the beginning of June.
Pierer Mobility AG CEO Gottfried Neumeister welcomed the breakthrough:
KTM is back on track. Our employees have given their all over the last few months to keep the race going. We can now continue this great story for the millions of KTM fans around the world.
This announcement puts an end to a period of uncertainty for KTM, whose business had been heavily impacted, notably by the temporary shutdown of production at Mattighofen (Upper Austria), resulting in massive layoffs.
Bajaj and CFMoto on board, as expected
At the start of the day, rumours of a possible takeover of KTM by BMW Motorrad spread rapidly. But the reality of the rescue relies on other key players. The turnaround would obviously not have been possible without the support of strategic investors: CFMoto (China) and Bajaj Auto (India), already long-standing partners of KTM, injected considerable funds to enable the restructuring. In all, over 900 million euros were raised by some twenty investors, facilitating the acceleration of repayment.
This breath of fresh air has enabled KTM to anticipate the relaunch of its activities, and to reduce the repayment period initially scheduled for two years. However, the company will still need to raise at least a further 600 million euros to guarantee a complete turnaround, as well as another 150 million euros for a full resumption of production.
Gradual resumption from March
With this plan validated, KTM can finally look forward to a gradual recovery. Immediate funding of 50 million euros has been released by shareholders to cover the costs associated with the resumption of production. The Mattighofen plant is due to resume production gradually from mid-March 2025, which is crucial news for the brand's employees and enthusiasts, present in large numbers at the Lyon 2-wheel show.
"We're doing this for the millions of KTM fans around the world. We are grateful every day. For our racing riders, of whom we're bloody proud. And for our site in Austria, to which we are deeply attached. KTM remains one of Upper Austria's best employers in the industry", continues G.Neumeister.
A second chance for KTM
What's done is done, and with this restructuring, Pierer Mobility can look to the future with greater serenity. The brand remains a key player in the two-wheeler sector, and is determined to maintain its position in competition, particularly in MotoGP, despite a new approach to the discipline. At the same time, it aims to strengthen its presence on the road and off-road bike markets. Although the road ahead is fraught with obstacles, the approval of the restructuring plan gives KTM a second chance to continue writing its history...
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