The Pierer Mobility Group’s restructuring plan to ensure KTM’s survival has been approved by bank creditors in Austria.
On Tuesday in a regional court, KTM will now pay €548 million, which will be paid back by the end of May 2025.
The Austrian outfit will pay back 30% of its over €2 billion debts after entering self-administration in November 2024.
Once this initial payment has been paid, the courts will confirm the restructuring at the start of June.
Reportedly KTM has up to €900 million worth of raised from external parties already.
KTM can begin production again in mid-March after a freeze. It has been reported a €50 million loan from its shareholder Bajaj Auto, who owns a 49.9% stake in KTM.
The marque has reaffirmed its commitment to the MotoGP program for the upcoming season, but its future beyond 2026 remains uncertain.
Pierer Mobility AG released a statement: “This plan provides for creditors to receive a cash quota of 30% of their claims in the form of a one-off payment (cash quota),” read a statement from Pierer Mobility AG.
“In order to fulfil the quota of 30%, KTM AG must deposit an amount of EUR 548 million with the restructuring administrator by 23 May 2025 at the latest.
“The court will then confirm the restructuring plan at the beginning of June 2025 and the restructuring proceedings of KTM AG will end once it becomes legally binding.
“The planned full capacity of the four production lines in single-shift operation is to be achieved within three months.”
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