KTM makes positive announcement after money worry

KTM has confirmed on Tuesday that it has secured the necessary funding to pay its debt quota by the end of this week.

The Austrian manufacturer has been navigating its way through a financial crisis since late last year, which forced it into self-administration and to undertake a restructuring process.

In the ensuing months over the winter, KTM was forced to layoff staff, place a temporary pause on bike production, restructure its board of directors and sell off shares in various investments it had made - including in MV Agusta.

In February, it won a major regional court victory when its restructuring process was approved by creditors.

This deal sees KTM repay 30% of its over €2 billion debts, which amounts to around €600 million, by 23 May 2025.

KTM announce major deal after financial problems

While KTM had numerous companies express interest in pledging investment, until recently it was facing a race against time to secure the funding it needed.

A report in Indian media earlier this week stated that major shareholder Bajaj Auto had taken out a loan of €566 million which was to be used to pay off KTM’s debts.

Bajaj Auto released a statement on Monday that didn’t deny these reports, though remained tight-lipped on what the loan - approved by various banks - was for.

A statement released by KTM in the early hours of Tuesday morning confirmed it had secured the funding it needed, though did not state that Bajaj Auto was directly involved.

However, it appears that KTM management is electing to remain quiet on this until everything has been certified and the debt money transferred to the restructuring administrator.

The statement from KTM read: “As announced, the creditors of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH approved a restructuring plan quota of 30% on February 25, 2025, payable by May 23, 2025.

“The total amount required to finance the quota under the three restructuring plans amounts to approx. EUR 600 million.

“PIERER Mobility AG and KTM AG have received financing commitments, subject to the execution of the requisite agreements, which will ensure that the quota payments to fulfil the restructuring plans of KTM AG, KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH can be fulfilled on time by May 23, 2025.”

In recent days, KTM’s share value has increased in a sign of confidence in the brand’s immediate future.

It is likely that Bajaj Auto will have a greater influence in KTM going forward from its investment.

Currently, KTM is owned by Pierer Mobility AG, which in turn is 74.18% owned by Pierer Bajaj AG, while Bajaj Auto holds a 49.9% stake in Pierer Bajaj.

Despite the positive outlook for KTM’s immediate future, it remains to be seen how this will affect the brand’s MotoGP project.

Late last year, an initial court hearing revealed that a “planned” withdrawal from MotoGP was laid out for KTM under cost-saving measures.

However, in January, KTM motorsport boss Pit Beirer reassured the media of the parent company’s commitment to racing and confirmed plans were already in the offing for the 2027 MotoGP rules reset.