KTM has been saved after creditors accepted the restructuring plan submitted by KTM AG and parent company PIERER Mobility AG, with production “to be ramped up again gradually from mid-March 2025.”
So hopefully this means the brand will continue as we know both in terms of manufacturing and the production of their machines, but also in terms of their support for the sport through their teams.
The full Press Release by the PIERER Mobility AG as posted on their website is below:
PIERER Mobility AG: Restructuring plan of KTM AG accepted by creditors
- Restructuring plan accepted:
- Cash quota of 30%, payable by May 23, 2025
- Further fresh capital of around EUR 800 million required
- Production will be ramped up again from mid-March 2025
KTM AG, a wholly owned subsidiary of PIERER Mobility AG, filed for court restructuring proceedings with self-administration on November 29, 2024. The aim of the proceedings was to agree a restructuring plan with the creditors within 90 days.
Restructuring plan adopted
At today’s (yesterday) restructuring plan meeting, the creditors accepted the restructuring plan submitted by KTM AG. It provides for creditors to receive a cash quota of 30% of their claims. This cash quota is to be paid by KTM AG to the restructuring administrator by May 23, 2025.
Gottfried Neumeister, CEO of PIERER Mobility AG: “I am grateful and happy today. KTM is back on track. Our employees have done everything over the last three months to ensure that the race can continue. We have closed an important chapter today. But a single chapter never tells the whole story. Now we can continue the great story of KTM. We do it for the millions of KTM fans worldwide, to whom we are grateful every day. For our racers, of whom we are damn proud. And for our Austrian location, to which we are deeply attached in our hearts. KTM remains one of the top employers in the Upper Austrian industry.”
Fresh capital of around EUR 800 million required
In order to finance the cash quota and further production, the Group requires fresh capital of around EUR 800 million. Citigroup Global Markets Europe AG (“Citigroup”) was commissioned to support this investment process in a structured, transparent and efficient manner in the interests of all stakeholders
Production will be ramped up again from mid-March 2025
To enable production to be ramped up again gradually from mid-March 2025, KTM AG will be provided with financial resources totaling EUR 50 million from the extended circle of shareholders. The planned full capacity utilization of the four production lines in single-shift operation is to be achieved within three months.
