KTM is back on track after creditors approved a €548 million restructuring plan, paving the way for the Austrian brand to resume production and settle its debts.
To restart operations, KTM has secured a €50 million financial boost from an extended group of shareholders. While the contributors remain undisclosed, industry speculation points to CFMoto, Bajaj, and potentially BMW as key players.
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This approval, announced on February 25, follows KTM AG’s court restructuring process, which began in November 2024 under ‘self-administration.’ The company had 90 days to finalize a deal with creditors—a deadline it has now met. Under the agreement, creditors will receive 30% of their claims in a one-time cash payout. KTM must deposit the full €548 million with its restructuring administrator by May 23, 2025. Austrian courts are expected to confirm the plan by early June, officially concluding the process.
Production Set to Resume
Financial struggles forced KTM to halt production at its Mattighofen plant, leading to job cuts and a shift in manufacturing to India and China. Around 600 jobs were axed, and key leadership changes followed, including the departure of longtime CEO Stefan Pierer in January.
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With fresh funding in place, KTM is preparing to restart production by mid-March, aiming to restore all four production lines to full capacity within three months. The ‘Ready to Race’ brand is now gearing up for a strong comeback.
