After 88 days of trembling

KTM

On November 29, restructuring proceedings were opened for KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH.(Bild: Fesl Manfred)

Will the creditors accept the restructuring plan and thus KTM's 30 percent quota or will they reject the offer of the motorcycle manufacturer that has slipped into insolvency? Before the hearing at the regional court in Ried im Innkreis, the motto was "anything is possible". But at 1.50 pm it was clear: the restructuring is through! The creditors will receive 600 million euros.

One hour before the start of the restructuring plan hearing, there was already a shortage of parking spaces around the regional court in Ried im Innkreis and the first creditors were already lining up inside to register for the crucial court hearing.

At 8.26 a.m., there was a brief murmur directly in front of the jury courtroom: at the side of KTM AG restructuring administrator Peter Vogl, not only KTM AG CEO Gottfried Neumeister but also owner Stefan Pierer entered the courtroom. His first appearance at the regional court in Ried in the course of the mega-insolvency. Afterwards, the doors to the room closed - and did not open again for a long time.

Although the hearing was scheduled to begin at 9 a.m., the start was delayed because the preliminary discussions in the jury courtroom had already gone into overtime. The creditors' representatives were admitted at 9.19 a.m. and the all-or-nothing session began at 9.23 a.m., during which the KTM restructuring plan was voted on. Two hours and 12 minutes later, there was movement for the first time: The meeting was interrupted to count the votes for and against the restructuring plan. Almost two hours passed before the hearing was resumed. 25 minutes later it was clear: the green light had been given for the KTM offer!

Mountain of debt has grown to more than 2.2 billion euros
The mountain of debt had grown to 2.235 billion euros in recent weeks at the three companies (KTM AG, KTM Components GmbH, KTM Forschungs & Entwicklungs GmbH), all of which had slipped into insolvency on November 29, 2024. This means that around 600 million euros are due to settle the restructuring quota of 30 percent. Another 150 million euros will be needed to ramp up production.

Indian Pierer partner Bajaj as the "logical" investor
Who will pay these amounts? It is said that KTM owner Pierer Mobility will provide the 150 million euros for the resumption of production, which is scheduled to start up again on March 17. Pierer's Indian partner Bajaj has already pledged 50 million euros. The 600 million euros to pay for the restructuring quota are likely to come from an investor. Who will that be? The name Bajaj has been mentioned repeatedly in recent weeks, as the Indian company already plays an important role as a supplier and sales partner.

BMW Motorrad set a sales record last year
Stephan Zöchling, Remus owner and member of the board of Pierer Industrie AG since January 1 and chairman of the supervisory board of Pierer Mobility AG since January 27, has also made no secret of his advances. Talks are also apparently underway with BMW. The motorcycle brand of the German premium manufacturer set a sales record last year, delivering 210,408 motorcycles. The largest market was Germany. To put this into perspective: 268,000 motorcycles from the KTM Group were sold to end customers in the previous year.