Search for investors underway

“Relieved!” KTM breathes a sigh of relief after stage victory

Gottfried Neumeister (left) and Peter Vogl (right) made a statement after the first court hearing in the course of the KTM insolvency.

(Bild: Krone KREATIV/Daniel Scharinger)

The green light has been given for the continuation of the three KTM companies that have slipped into insolvency - but what happens now? The fact is that the motorcycle manufacturer urgently needs fresh money and has brought the investment bank Citigroup on board to provide support. Bajaj Auto from India, already a co-owner alongside Stefan Pierer, has also already made an offer.

At 1.20 pm, the door to the jury courtroom of the regional court in Ried im Innkreis opened for the third and last time this Friday - shortly afterwards, Gottfried Neumeister, the co-managing director of KTM AG and Pierer Mobility AG, and KTM AG restructuring administrator Peter Vogl came out of the room where all three report hearings had previously taken place.

The meeting for KTM AG took 50 minutes, the meeting for KTM Components GmbH took 17 minutes, and it took 20 minutes before it was clear that KTM Forschungs & Entwicklungs GmbH would also be continued. It is an important first step in the battle for the future of the company from Mattighofen (Upper Austria).

"It's just the first stage"
"We are really relieved, but this is only the first stage in a 90-day restructuring process," said Neumeister, who revealed: "We are working flat out to ensure that this company can continue in the long term." The manager emphasized that the most important concern was to preserve as many jobs as possible. More than 3,600 employees worked in the three companies affected by the insolvency, and 250 were made redundant at the beginning of December.

It is about an Austrian brand that is known all over the world - from Los Angeles to Sydney.

Gottfried Neumeister, seit September Co-Geschäftsführer der KTM AG und der Pierer Mobility AG

The search for investors is in full swing. "We are holding talks at full speed," said Neumeister: "We are looking for new investors, we are holding talks with all creditors to find a sustainable solution, and we are having very good and constructive talks with the banks in particular."

Production at KTM has been at a standstill since the evening of December 13.

(Bild: Scharinger Daniel)

Indian partner also submitted an offer
Three non-binding offers from investors were submitted to the court yesterday, including one from existing partner Bajaj Auto from India. "We expect that many more interested parties will come forward in January," says Neumeister.

It is a good sign that fewer jobs will be cut than initially thought. KTM is not out of the woods, but the path ahead looks viable.

Markus Achleitner, Oberösterreichs Wirtschafts-Landesrat

Second wave of redundancies will probably affect "a maximum of 300 employees"
The threat of around 500 employees having to leave in a second wave of redundancies at the beginning of 2025 seems to have been somewhat averted. Vogl also said on Friday that there will probably be a maximum of 300 who will have to be let go. "The way things are developing now, it is likely that a maximum of 300 employees will have to be laid off in the restructuring process," said the lawyer.

Battle for capital and liquidity
With regard to the search for an investor, which could ultimately lead to a new majority owner, Vogl says: "We all hope that an investor will come along. We hope that this investor will bring sufficient capital and liquidity into the Group to ensure a sustainable restructuring of KTM."