Crunch verdict arrives for major creditors vote to decide KTM survival
Creditors have decided the fate of KTM
The Pierer Mobility Group has announced that KTM AG’s restructuring plan to pay back creditors and ensure its survival was accepted in a regional court in Austria on Tuesday.
The Austrian firm entered into self-administration on 29 November 2024 as it looked to stave off bankruptcy having fallen into a major financial crisis over the course of last year.
Staff layoffs, a pause in production, CEO Stefan Pierer stepping down and a scaling back of its factory racing programmes all followed as KTM tried to navigate the situation.
Winning key regional court milestones over the past few months, KTM’s decisive day was Tuesday 25 February when its restructuring plan would be voted on by creditors.
With debts at over €2 billion, KTM’s restructuring plan vowed to pay back 30% to creditors - initially within two years, but that has been accelerated to be completed by the end of May 2025.
That plan was accepted by creditors, who will receive a combined €548 million, which will be deposited with the restructuring administrator by 23 May.
The courts will then confirm the restructuring at the start of June, whereby the proceedings will be official ended once legally binding.
KTM must find that investment, though various reports in recent weeks state up to €900 million has been pledged from numerous entities.
It means KTM can begin production again from mid-March, with investment of €50 million being provided to KTM from shareholders.
KTM did not name these shareholders, but a report in The Hindu in India states Bajaj Auto - who owns 49% of KTM - pledged the €50 million loan.
KTM's MotoGP future remains uncertain
It’s unclear yet how this affects KTM’s MotoGP project, which was initially said to have a “planned” end by 2026 under the restructuring proceedings back in December.
KTM confirmed in December that it was carrying on as planned in 2025, and talks of it having to pull out at the end of 2026 have gone quiet since the initial court report stating as such last year.
Read more: KTM MotoGP project stands defiant amid company chaos
The company has scaled back its factory support to 40 riders across all disciplines in 2025, while sister brands like GASGAS and Husqvarna have disappeared from the grand prix grid.
Despite all of this, KTM won the Dakar Rally in January.
The uncertainty over its MotoGP programme has led to intense speculation about Pedro Acosta's future, with last year's rookie sensation linked to moves elsewhere on the grid for 2026 despite having a multi-year deal with KTM.
Earlier this month, Acosta said a factory visit allowed him to get a true understanding of what was happening at KTM behind the scenes and told the media that it was "night and day" different to what he had been reading.
No word on BMW investment rumours
Earlier this week, Austrian media reported that BMW was an interested investor in KTM - though this claimed that the operation would be relocated to Germany, while production would move to India.
This would mean all 4500 staff members at KTM's Austrian base being laid off.
However, Crash understands that these reports were likely wide of the mark. Neither KTM, nor BMW, has commented on these rumours.
An investment from BMW, though, would seem unlikely currently as the manufacturer is facing its own financial crisis as a recession grips Germany.
A report earlier this year stated that 23 parties wanted to invest capital into KTM to save the brand.
