KTM Production to Resume as Restructuring Plan Accepted by Creditors
The news will mean KTM production will begin to ramp up in March 2025
A significant page has been turned for KTM, as the plan to restructure the business has been accepted by the creditors.
The most significant piece of news from the court in Austria is that production of KTM bikes can once again begin, with a ‘ramp-up’ planned to begin next month. It also brings the news that KTM’s numerous creditors will see 30 per cent of their claims paid by the Austrian company, with the total bill said to be 548 million euros. These funds will have to be with the restructuring administrator by May 23, 2025, with the restructuring ending in June 2025 once the proceedings become legally binding.
To help kick start production, KTM is stated to be receiving a sum of 50 million euros from what the press release calls an “extended circle of shareholders”. The companies within that “extended circle” are not named, although CFMoto, Bajaj, FountainVest, and more recently BMW, have all been mentioned as lining up to invest.
The press release from PMG can be read below:
"At today's restructuring plan meeting, the creditors accepted the restructuring plan submitted by KTM AG. This 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.
"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. With the approval of the reorganisation plan, this amount will now be transferred to KTM AG to cover the costs of the phased resumption of production in March 2025. The planned full capacity utilisation of the four production lines in single-shift operation is to be achieved within three months.The ramping up of production will understandably be a steady process, with the press release from Pierer Mobility Group stating that “full capacity utilisation of the four production lines in single-shift operation” should be achieved in three months from the proceedings becoming legally binding."
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
