KTM to be relieved of debt after insolvency and continue production in March
The former largest European motorcycle brand wants to resume production, which was halted in December. This is possible as early as mid-March.
(Image: KTM)
The Austrian motorcycle manufacturer KTM is insolvent, with debts of around two billion euros. Rapid debt relief is now possible. The creditors approved a restructuring plan at the Ried im Innkreis district court so that production can start again in March. The group included MV Agusta and Husaberg, today still Husqvarna, GasGas, the chassis supplier WP and several bicycle brands.
The plant is to be retained
30 percent of the sum is to be repaid within three months. As planned, the Indian KTM co-owner and motorcycle contract manufacturer Bajaj and another investor are to raise the money, as the creditors' representative Creditreform announced today. With regard to the latter, KTM only stated that it was working on a joint solution in order to be able to resume production quickly. None of the parties involved in the negotiations are interested in breaking up the company or selling the brand.
Videos by heise
KTM boss Stefan Pierer had developed the brand into Europe's largest motorcycle manufacturer over a period of more than thirty years. Last year, the brand fell into the red due to a slump in demand and subsequent immense overproduction. This was compounded by quality problems. In November 2024, KTM had already laid off 573 employees, and talks between the management, creditors and shareholders about a bridging loan had been ongoing since then. Production at the company in Mattighofen had been suspended since mid-December due to the insolvency.
(fpi)