It has been revealed that creditors have approved Pierer Industrie AG’s restructuring plan after proposals were agreed.
This plan being accepted could lead to KTMs survival after debts were reported to exceed €2 billion. In addition, it was reported that around 2,500 claims have been made by its own employees.
On Thursday, these plans were accepted at the Wels Regional Court in Austria, with €247.5 million approved which will be paid in full.
The hearing lasted for approximately one hour. Reportedly, this vote on the European restructuring plan signalled the first time this procedure was undertaken within the country since its introduction on June 17th 2021.
As a result of the hearing, the company will pay back 68.69% of the money owed by the 31st of December 2026 and 2027.
Due to the investment from over 20 external parties reaching up to €900 million, the timeline to pay back its outstanding debts has been shortened.
KTM will face a crucial vote on its plans next Tuesday ahead of the MotoGP season opener in Thailand. Reportedly 30% is expected to be paid to creditors by the end of May, instead of after two years.
According to ORF, €150 million is needed to end the Austrian marque’s production freeze on its product range and MotoGP endeavours. €600 million is required to match the repayment quota.
If the plan is rejected on Tuesday, it is reported that bankruptcy could be on the cards for the Austrian marque.
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