In a brief (very brief considering the complexity of the situation) PIERER Mobility claimed KTM was back on track and motorcycle production will resume in “mid-March 2025.” Noting that the KTM AG reorganization plan was accepted by creditors today (February 25, 2025), CEO Gottfried Neumeister proclaimed: “KTM is back on track.” There are a couple caveats that could send the Austrian OEM back into the weeds however. Creditors will need to be paid 30% by May 23, 2025 and KTM still needs an infusion of fresh capital to the tune of EUR 800 million required.
Resetting the stage: If you missed Dealernews’ deep dive into the muddy waters last October:
here is the abridged version: KTM AG — a wholly owned subsidiary of PIERER Mobility AG — had filed for court restructuring proceedings with self-administration on November 29, 2024. The aim of the proceedings was to agree to a restructuring plan with the creditors within 90 days.
The Restructuring Plan Adopted
At the February 25 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.
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.
“Our employees have done everything over the last three months to ensure that the race can continue,” states Neumeister. “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.”
