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Creditors have approved KTM’s restructuring plan after a vote held at the regional court in Ried im Innkreis, Upper Austria, on Tuesday.
According to a press release issued by PIERER Mobility AG, the “plan provides for creditors to receive a cash quota of 30% of their claims in the form of a one-off payment (cash quota). In order to fulfil the quota of 30%, KTM AG must deposit an amount of EUR 548 million with the restructuring administrator by May 23, 2025 at the latest. The court will then confirm the restructuring plan at the beginning of June 2025 and the restructuring proceedings of KTM AG will end once it becomes legally binding.”
Per Cycle News, “the Alpine Creditors Association (AKV) said judicial confirmation depends on the €150 million ($157 million) continuation costs being deposited by May 23, 2025. The first amount of €50 million ($52 million) was placed in a trust account on Monday, February 24. In total, €750 million ($788 million) must be secured by the May 25 deadline.”
PIERER Mobility AG announced they still need EUR 800 million in fresh capital: “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.”
Per PIERER Mobility AG, production will begin to ramp up gradually in mid-March. “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.”
Gottfried Neumeister, CEO of PIERER Mobility AG said: “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.”
Main image: KTM Images
Will the greed and corruption at the top be out of the new picture?