KTM’s crunch meeting on its survival is edging nearer

A crucial vote on KTM’s restructuring plan and its ultimate survival as a company looms, with the future of the brand to be known on 25 February.

KTM entered into self-administration late last year as it looked to stave off bankruptcy having descended into a major financial crisis.

The Austrian brand’s debts are reported at €1.8 billion - though this figure could exceed €2 billion - while mass staff layoffs and a pause in motorcycle production has been forced as a result of the crisis.

CEO Stefan Pierer stood down at the start of the year to be replaced by former Co-CEO Gottfried Neumeister, while the Pierer Mobility Group - which KTM falls under - has had to make cuts elsewhere, such as selling its stake in MV Agusta.

The company has so far survived several critical hearings and been able to continue with its restructuring plan, which is set to see it repay 30% of its debts to creditors.

Originally, that was to be done within two years.

KTM hope for its future

However, according to a report from GPOne, KTM has secured enough capital from investors to be able to pay the 30% by the end of May 2025.

This will undoubtedly work in its favour as it faces a creditors vote on Tuesday 25 February, where this plan will either receive approval or be rejected.

Current shareholders Bajaj and CFMoto have boosted investment in KTM, while 23 other investors have pledged to commit up to €900 million.

KTM’s pause on production is also set to end in March, though GPOne states that €150 million is required for this.

While there has been cautious optimism in the KTM camp about its future, there have been reports that some creditors are not happy with the 30% statutory minimum by Austrian law being offered.

Should KTM’s restructuring plan be rejected by creditors, the company faces bankruptcy.

KTM has scaled back its factory racing efforts in 2025, reducing its number of works riders to 40 across various disciplines.

The future of its MotoGP project has been of particular focus since an initial creditors hearing stated that a withdrawal from grand prix racing was “planned”.

The project will continue as normal in 2025, with four factory KTM riders on the MotoGP grid across its works team (Pedro Acosta and Brad Binder) and Tech3 (Enea Bastianini and Maverick Vinales).