Fight for rescue

Offer improved: KTM pays off debts in April

Motorcycle manufacturer KTM has been a restructuring case since November 29.

(Bild: EPA)

By January, motorcycle manufacturer KTM's mountain of debt had grown to almost 2.4 billion euros - the company from Mattighofen wants to pay 30 percent of its creditors' claims through the restructuring plan. To ensure that they are in a good mood, the offer has now been improved. The money will flow faster - and apparently as early as April.

In 13 days, the regional court in Ried im Innkreis will vote on the reorganization plan for KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH. Just in time for the crucial court hearings and the fateful day on February 25, the motorcycle manufacturer, which had slipped into insolvency, made its creditors a better offer.

In concrete terms: the quota remains at 30 percent, but the repayment of these debts is to be faster. The financing should be in place by the end of March, received by the restructuring administrator by April 15 and then transferred by him. Previously, a payment period of two years was in the cards.

In recent weeks, there had been repeated reports, particularly from banking and financial institution circles, that they were not satisfied with the quota. Now the offer to reach the quota more quickly seems to be acceptable to everyone.

If the reorganization plan is rejected and bankruptcy proceedings are opened against the assets of KTM AG, only a quota of around 15% can be expected from the break-up of the KTM Group. The report and the expert opinions on this will be completed by February 17, 2025 and submitted to the court.

Peter Vogl, Sanierungsverwalter der KTM AG

Bajaj-Zöchling-Connection apparently the favorite
Apart from this, negotiations with investors to finance the rescue are in full swing. A solution is emerging with the existing Pierer partner Bajaj from India and Remus owner Stephan Zöchling, who has been a member of the Pierer Industrie AG Executive Board since the beginning of January and also Chairman of the Pierer Mobility AG Supervisory Board since January 27.

The claims of all three KTM companies amounted to a total of 2.387 billion euros on the day of the audit hearing on 24 January, of which 1.684 billion euros have been recognized to date. Creditors registered claims of around 2.2 billion euros for KTM AG alone.