KTM is "back on track"

KTM has taken a big step towards salvation following its latest meeting, with CEO Gottfried Neumeister proclaiming that "KTM is back on track". But the embattled brand is not out of the woods yet.

Creditors yesterday accepted a restructuring plan submitted by KTM AG, that will see the Austrian firm pay a cash quota of 30 per cent by May 23. That money will be delivered to creditors in a one-off payment totalling EUR 548 million. 

In the meantime, KTM will receive EUR 50 million in financial resources from its shareholders to help it gradually ramp up production from mid-March 2025. 

The catch is that KTM will need to find around EUR 800 million in order to proceed with this plan. That money is expected to come from yet-to-be named investors. It is unclear if a deal has been done, but KTM previously said in a statement that several offers have been made.

The mystery investors could in theory include long-time KTM partners Bajaj Auto (a major shareholder of KTM) and CFMOTO (which has a joint venture with KTM).

A more explosive rumour that has been circulating recently is that BMW is interested in buying KTM and relocating it from its tradition Austrian home. Such a move would be a big blow to the Upper Austria state, where KTM is one of the top employers.

According to the Alpenländischer Kreditorenverband (Alpine Creditors Association), there are close to 6000 insolvency claims from creditors across the KTM AG, KTM Research and Development GmbH, and KTM Component GmbH subsidiaries. More than 4000 of these are from employees.