BMW has emerged as a surprise contender to save KTM long-term, after the Austrian brand announced it has agreed to a deal with its creditors.
KTM has managed to work out a restructure deal that will see up to 70 per cent of its €2 billion ($3.3b) debt wiped out, but there are still some significant challenges ahead. The brand will need to pay back approximately €600m ($995m) by the end of May, while also finding another €150m ($248m) to get production restarted by the middle of March. If it can achieve these targets it will keep the company operational, securing approximately 2000 employees until the middle of the year.
KTM parent company, Pierer Mobility AG, issued a statement following the decision being handed down by the Austrian court.
“This plan provides for creditors to receive a cash quota of 30 per cent of their claims in the form of a one-off payment [cash quota],” the statement read.
“In order to fulfil the quota of 30 per cent, KTM AG must deposit an amount of EUR 548 million with the restructuring administrator by 23 May 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.”
Beyond this current situation, the company will likely need more investment to secure its long-term future, which is where BMW Motorrad has emerged as a potential saviour. Reports from Germany indicate there is a push for BMW to step in and take control of the Austrian brand. There has been no official comment from BMW Motorrad, the speculation claims it would move KTM out of its home market and centre development in Germany and move production to India, to lower costs.
Discussion about this post