As required by Austrian law, PIERER Mobility AG has disclosed some of the terms of the Bajaj bailout in an ad hoc notification pursuant to Article 17 Regulation (EU) No 596/2014.
Wels, May 22, 2025
PIERER Mobility AG: Bajaj provides funds to PIERER Mobility AG and KTM AG to serve the quotas in the KTM restructuring proceedings
• Restructuring plan quotas of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH will be fulfilled in time
• Changes in the Executive Board of PIERER Mobility AG
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 and final amount required to finance the quota under the three restructuring plans finally amounted to EUR 525 million.
Bajaj Auto International Holdings B.V. provides the required funds to enable the continuity of the KTM business by funding the quota payment to the creditors in furtherance of KTM’s debt restructuring. For this purpose, a loan in the amount of EUR 450 million is granted to KTM AG. An additional amount of EUR 150 million is granted to PIERER Mobility AG which passes on the required balance to meet the quota payments to the KTM companies.
In a related move, Stefan Pierer steps down from the Executive Board of PIERER Mobility AG in June 2025 after the conclusion of the restructuring proceedings. The Supervisory Board appoints Verena Schneglberger-Grossmann, who has been with the group since November 2015, as new member of the Executive Board (Chief Legal Officer) of PIERER Mobility AG supporting the new CEO Gottfried Neumeister.
A Look At The Books
Provisional key figures for the year 2024 based on the going concern assumption… Here is a bullet point reminder of what Bajaj has bought off on:
• Revenues: € 1,879 million (- 29 %)
• EBITDA: € -484 million
• EBIT: € -1,188 million
• Result before taxes (EBT): € -1,280.1
• Equity negative at € -199 million
• Inventory reduction in full swing
• Employees as of 31 December 2024: 5,310 (previous year: 6,184)
After production at the KTM plant in Mattighofen had been halted December 13, 2024, the first steps towards restarting production began on March 17, 2025. This was made possible by the injection of funds totalling €150 million from strategic partner Bajaj Auto.
According to the plan, subject to the positive conclusion of the investor process, all four production lines will be back in operation by summer 2025. By then, the global supply chain will also be gradually reactivated to ensure a smooth production process with efficient throughput times and no further interruptions to production.
