KTM Sees Light At The End Of The Tunnel With Approved Restructuring Plan

Saajan Jogia | Feb 21, 2025

Apr 13, 2024; Austin, TX, USA; Brad Binder (33) of South Africa and Red Bull KTM Factory Racing rides during practice for the MotoGP Grand Prix of the Americas at Circuit of The Americas. Mandatory Credit: Jerome Miron-Imagn Images / Jerome Miron-Imagn Images

Facing a financial crisis since late last year, including KTM AG’s debts reportedly exceeding €2 billion, the Pierer Mobility Group entered self-administration to avoid bankruptcy. Austrian creditors have now approved the group's restructuring plan, which could be seen as a light at the end of the tunnel for KTM.

Pierer Industrie AG took a huge step toward financial stability on Thursday as its restructuring plan was approved during a hearing at the Wels Regional Court. The company had applied for a European restructuring procedure, a pre-insolvency measure designed to aid struggling businesses in regaining financial footing.

As part of the approved plan, Pierer Industrie AG secured nearly €250 million in financing, which it will repay in full. The agreement outlines a repayment schedule of 68.69% by the end of 2026, with the remaining balance, including agreed interest on loans, settled by the end of 2027. The Alpine Creditors Association (AKV) views this approval as a crucial step toward KTM’s successful financial recovery.

Now, though, KTM is preparing for a vote on its restructuring plan next Tuesday. If approved, the company must repay 30% of its outstanding debts by the end of May—an accelerated timeline made possible by substantial investments from over 20 sources, amounting to nearly €900 million.

ORF reported that KTM requires approximately €600 million to meet its outstanding debts, while an additional €150 million is needed to resume operations at its Mattighofen facility. The company aims to restart production by mid-March.

This could also be good news for KTM's MotoGP project, which is rumored to conclude by the end of 2026. However, following his visit to Mattighofen, KTM factory rider Pedro Acosta believes that the financial challenges have been blown out of proportion by the media and that KTM remains committed to its MotoGP project. He said:

“I was quite calm about KTM.

“So I went there before Christmas, and in the end it’s much easier to go there and lose one day and see how the situation is than just reading what the media is saying.

“Because after seeing how the situation was and after reading what I read in the media, it was like day and night.

“It was not true a lot of the things that I was reading in the media.

“I’m super happy to race in these colours and I think this situation is a thing that is something that will make us stronger.”