In what looked like a last-minute throw of the dice, KTM was proud to announce a major milestone on 22 May, precisely one day before an obligation to stuff agreed restructuring funds into its creditors’ hands. The company admitted that after months of “dedicated effort and strategic planning”, it had become able to expand its relationship with its long-standing partner Bajaj and secure the Indian motorcycle manufacturer as a leading investor.
In a parallel statement heavy on waffle, KTM chief executive Gottfried Neumeister said: “Today we have been given the opportunity to continue the history of KTM. Together with Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made available. Existing sites — in particular our main plant in Mattighofen/Munderfing — will remain the basis for our future success. In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible. I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world’s best-known motorcycle brands, which has a unique community.”
An ad hoc explanation of the nitty-gritty was also published on KTM parent Pierer Mobility’s website. This said: “As announced, the creditors of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH approved a restructuring plan quota of 30% on 25 February 2025, payable by 23 May 2025. The total and final amount required to finance the quota under the three restructuring plans finally amounted to 525 million euros.
“Bajaj Auto International Holdings BV provided the required funds to enable the continuity of the KTM business by funding the quota payment to creditors in furtherance of KTM’s debt restructuring. For this purpose, a loan of 450 million euros was granted to KTM AG. An additional amount of 150 million euros was granted to Pierer Mobility AG, which passed on the required balance to meet quota payments to the other KTM companies.”
The website also reported Stefan Pierer is to step down from the executive board of Pierer Mobility AG in June 2025, after the conclusion of restructure proceedings. Pierer Mobility’s supervisory board has also appointed Verena Schneglberger-Grossmann, who has been with the group since November 2015, as a new member of the executive board in a chief legal officer role, supporting chief executive Gottfried Neumeister. Presumably Bajaj Auto’s freshly extended shareholding in the business will culminate in it ruling the corporate roost.