KTM Announces Securing Of Finance For Restructuring

KTM has been rescued, that’s what its parent company Pierer Mobility AG has said, stating that a 600 million Euro financing package has been secured to meet the Austrian motorcycle brand’s restructuring plan. The finance package has been acquired just days before the May 23, 2025 court deadline, so for now, KTM looks all set to pay the agreed 30 per cent quota to creditors. This means that restructuring plans of KTM and its subsidiaries can be fulfilled on time.

Also Read: Bajaj Auto Secures 566 Million Euro Funds

In a statement, KTM’s parent company Pierer Mobility AG has said, “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 fulfill the restructuring plans of KTM AG, KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH can be fulfilled on time by May 23, 2025.”

Also Read: KTM Very Important For Bajaj Auto, Says Rajiv Bajaj

KTM’s Indian partner Bajaj Auto has only recently announced in a regulatory filing with the Bombay Stock Exchange (BSE) that it has secured a 566 million Euro (nearly Rs. 5,500 crore) loan through a consortium of major international banks - JP Morgan Chase & Co., DBS Bank Ltd., and Citigroup Inc. Although Bajaj Auto has not specified what this funding will be used for, the timing strongly indicates that the funds have been directed towards fulfilling KTM AG’s obligations under the restructuring plan. 

Also Read: Bajaj Auto Approves 150 Million Euro Funding For KTM

For now, the next steps in KTM’s recovery will be to deposit the 600 million Euro with the administrator. What remains to be seen is what role Bajaj Auto plays going forward in KTM. Recently, Bajaj Auto Managing Director Rajiv Bajaj had said that his team has been engaged over the past few months to formulate what he described as a “sustainable solution” to address KTM’s financial challenges. Bajaj through its subsidiary, Bajaj Auto International Holdings BV, currently holds 49.9 per cent stake in Pierer Bajaj AG, which in turn is the parent company of KTM AG. Whether Bajaj picks up more stake in KTM’s parent firm is something which is not clear at this stage, but is a possibility.