Could cost millions

If rescue fails, KTM also faces trouble from customers

Last year, sales partners and dealers sold 268,000 motorcycles from the KTM Group.(Bild: GEPA)

Will the creditors accept the 30 percent quota and thus give the green light for the restructuring of KTM or will the motorcycle manufacturer go bankrupt and be broken up? Tension is mounting ahead of the vote on Tuesday, February 25, in Ried. The fact is: if the rescue plan fails, the Mattighofen-based company will also face millions in customer anger.

"If the restructuring plan is rejected and bankruptcy proceedings are opened over the assets of KTM AG, only a quota of around 15 percent can be expected from the break-up of the KTM Group" - this was announced by restructuring administrator Peter Vogl on February 12 in the press release in which the motorcycle manufacturer announced that it would not be paying its debts to creditors within two years, but within a few weeks. The money should be in the account of the restructuring administrator by April 15, it said.

If the green light is given, the claims will be settled in June
This deadline has now been pushed back a little. The money must be received by lawyer Peter Vogl by May 31, who will then make the payments in the course of June - provided the green light is given on Tuesday, February 25, for the restructuring plan submitted by the Mattighofen team. A 30 percent quota is being offered to the creditors, some of whom have been rumbling until recently that this is too little.

However, the report that Peter Vogl submitted to the regional court in Ried im Innkreis on Monday may have opened the eyes of many. In it, the causes of insolvency were once again discussed in detail. Furthermore, the appropriateness of the quota was also discussed in detail. And there is one point in particular that makes people sit up and take notice: the claims for damages that could become due if the rescue is unsuccessful and the restructuring process turns into bankruptcy and the company is broken up as a result.

The investor process is currently in the decisive phase.

Die KTM AG in einer Presseaussendung am 12. Februar 2025

Motorcycle owners have the right to spare parts
The note "unquantifiable risk" refers to the fact that there is a threat of trouble from customers if KTM goes out of business. This is because motorcycle owners have the right to demand spare parts. However, these would then no longer be produced in the event of a break-up, which according to experts could result in claims in the millions. In the previous year alone, 268,000 motorcycles from the KTM Group changed hands.

600 million euros for the quota, 150 million euros for production
The costs for the rescue are also becoming more and more concrete: As the recognized claims at KTM AG alone have risen to around two billion euros, all three insolvent companies (KTM AG, KTM Components GmbH, KTM Forschungs & Entwicklungs GmbH) together are likely to need around 600 million euros to meet the 30 percent quota. A further 150 million euros are needed to ramp up production again. Motorcycle assembly is scheduled to start again on March 17.