Ktm Avoids Bankruptcy And Alleged Bmw Takeover With Restructuring Plan

Yesterday, it seemed like the sky was falling over KTM’s headquarters in Mattighofen, Austria. The famous builder of motorcycles and extreme open-wheel track cars was facing bankruptcy and rumors were swirling that, if its creditors didn’t approve of a restructuring plan, BMW could end up buying the company. Today, we received confirmation that KTM is officially staying put under existing management, as creditors signed off on the plan earlier this afternoon.

KTM owes nearly $2 billion, which isn’t something creditors are just going to forget about because of restructuring. To keep them happy, the Austrian bike maker needs to pay 30% of its outstanding claims in one lump sum of $575 million by May 23, 2025. If KTM can deliver that massive cash dump by its due date, its creditors will confirm the rest of the repayment plan by early June. After that, this whole ordeal is officially over.

To help get KTM back on its feet and manufacturing bikes and wild racers again, it’s getting a $50 million shot in the arm from its shareholders over at its parent company, Pierer Mobility. That will give the brand some liquidity, so it can get four production lines up and running on single shifts within three months. More critically, Motorsport.com notes that the company has received a sizable influx of cash from an anonymous investor.

This should come as a relief to both KTM fans and the people of Mattighofen. When the report of a BMW Motorrad takeover began, so did the rumor of the brand’s Austrian headquarters being shuttered. It was alleged that BMW was prepared to move all production to India, where KTM already builds some vehicles. Such a move would have cost thousands of jobs in Austria and obviously damaged the local economy. While that idea never made much business sense to begin with, no one has to worry about it now—so long as the cash keeps flowing, anyway. Hopefully, normal activity at the plant will resume in due time, and KTM can keep building dirt bikes, street bikes, and the famous X-Bow for the foreseeable future.

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