© 2025, Roadracing World Publishing, Inc. By Michael Gougis.
KTM’s financially troubled debts have reached only about €2. 2 billion, while 23 investors have come forward with enough cash to fund the company’s proposed restructuring plan, the latest reports from bankruptcy proceedings showed.
The opposing claims against KTM AG now total 2,185,344,613. 84 euros, or approximately $2. 298 billion, according to a report published through the AKV Europe/Alpine Creditors Association, the firm that monitors the legal proceedings.
This figure increases, according to the agency’s report.
The company is expected to continue operating, the firm said, since only a continuous operation will attract the necessary investment. There is enough budget to continue operations in the eighth week of 2025, according to the report. Potential investors come with monetary and strategic investors, according to the report. (Strategic investors provide experience, resources and specific connections of the industry with corporate and money money). However, the report calls any of the possible investors.
The money on the table from those investors would allow KTM to proceed with a restructing plan that involves paying off its outstanding debts at 30 percent of their face value, the Pierer Mobility Group said in a statement released yesterday. The 30 percent figure is the legal minimum repayment offer.
However, the overall debt figure is expected to rise, the AKV report said, and an analysis is ongoing into the financial relationships between the various entities under the broad KTM banner. A meeting is scheduled for Feb. 25 to determine whether sufficient investment has been reached, the report states.
Unlike AKV’s past report, there is no mention of the motorcycle recall on the road to the Grand Prix. Stefan Pierer, a longtime KTM CEO, has resigned from his post and production is at a standstill as the corporation struggles to decrease its inventory of unsold motorcycles. But KTM’s racing arm claims that it builds race bikes for the 2025 MotoGP season and that it will participate in the 2025 series.
The full statement from AKV follows:
As is known, on November 29, 2024, restructuring proceedings with self-administration were opened for the assets of KTM AG and its two subsidiaries KTM Forschungs & Entwicklungs GmbH and KTM Components GmbH.
Today the examination hearing took place at the Ried Im Inkreis regional court.
Following the conclusion of the hearing in the KTM AG proceedings, the Alpine Creditors Association (AKV) announces:
The procedures are as follows.
KTM AG
Complaints
To date, 3,534 claims have been filed , namely 2,347 claims from employees and 1,187 claims from other insolvency creditors.
The volume of registered judicial cases is:
To date, accounts receivable have been recognized in the amount of €1,665,985,681. 24.
Many upcoming claims are expected. The claims do not yet come with redundancy claims from workers who have been laid off or are leaving the company, and claims are still being brought before the court on an ongoing basis, which will be dealt with at some other special hearing. Claims filed in the procedure are therefore expected to increase.
At the moment, “intercompany” claims are contested under the facets of inventory replacement and conceivable challenges. These issues are being tested in detail with the help of experts, following an abundant accumulation of intragroup receivables and reimbursements from January 1, 2023 to fund ongoing activity (losses) and major liquidity needs. Therefore, the restructuring manager is lately busy analyzing intra-group financing.
In particular, claims for damages filed (conditionally) by creditors in the event of non-entry into current contracts are also provisionally disputed. Since the production plans are currently being revised, there are often no statements from the restructuring administrator or the debtor company regarding contract entry or contract withdrawal. In the event of contract withdrawal, the claims for damages filed would become effective.
The claims filed by creditors who have asserted rights of separation on the grounds of retention of title have also been provisionally disputed. The volume of claims in question is approximately EUR 200 million. In this regard, the restructuring administrator is examining whether these rights of separation or retention of title have been legally agreed.
employee
The number of workers has decreased since the beginning of the bankruptcy proceedings. Of the original 2,477 workers, 1,991 are still active recently, after several waves of layoffs and resignations.
In addition, 100 temporary workers have been laid off since the insolvency proceedings began.
Furthermore, three management contracts were terminated with the consent of the restructuring administrator.
Processing / Liquidity
As is well known, production is currently at a standstill. The “continuation”, especially the continued payment of wages to the largely laid-off workforce on short-time work, is therefore financed through existing assets. In order to secure liquidity, it was therefore necessary to reverse the real estate transaction of PIERER IMMOREAL GmbH. Further inflows will come via the sales subsidiaries. At the level of the sales subsidiaries in particular, efforts are being made to reach a final agreement with the institutions providing financing there in order to secure liquidity in the longer term.
According to a validated monetary continuity plan, the insolvency box has sufficient liquid budget until week 08/2025. It is expected that until then an agreement can be reached with possible investors, because according to the existing prestige of the procedure, the financing of the quota restructuring plan is credible through an investor.
Investors
Despite the production stoppage, the company will continue to operate, as only a “living” KTM Group will allow investors to enter the business.
At the same time, the KTM parent company, Pierer Mobility AG, commissioned Citygroup Global Markets Europe Ag (“Citibank”) to a solution for investors. This procedure is ongoing and in general of 23 possible investors participate. It is said that they are strategic investors and monetary investors.
Additional controls
Many criticisms that have been introduced have still been terminated due to the scope of the procedures.
These are considerations that assess the suitability of a restructuring plan, examining the reasons for insolvency and decline in assets, as well as any imaginable liabilities or challenges. Additionally, an estimate of cellular assets was commissioned.
The restructuring plan continues to provide for the statutory minimum offer of 30%, payable within 2 years.
The redevelopment plan meeting is scheduled for Tuesday, February 25, 2025, and it remains to be seen if a concrete offer can be negotiated until then.
KTM Components GmbH
To date, 739 claims have been filed in this procedure, of which 478 are from employees.
Insolvency claims amounting to EUR 80,971,072.08 were filed , of which claims amounting to EUR 48,886,627.97 were initially recognised.
The claims in dispute that amount to approximately 32 million euros are in the same scenario as those of KTM AG. The disputes therefore fear the “Intercompañía” claims that amount to 21. 9 million euros, imaginable claims for damage due to the lack of entry into contracts and estimates through the fiscal office and the Ögk.
Many future claims are also expected in this procedure; In particular, there are still claims for dismissal of workers.
When insolvency procedures began, the corporate hired 478 people. In the ongoing procedures, 97 workers have been discarded or renounced.
The majority of employees have been laid off as there is currently no production. The financial plan is being adhered to and liquidity and ” continuation ” are being coordinated with KTM AG, which is the main customer providing the liquidity.
In this procedure, too, the restructuring plan meeting is scheduled for February 25, 2025. The implementation of a restructuring plan will depend on an investor entering the KTM Group.
The previous figures refer to the documents that have been delivered to us and possibly will be repositioned slightly during today’s session, since it will not have an effect until 1:00 p. m.
KTM Accessories
So far, 1,162 claims have been filed in this procedure, of which 772 are from employees.
Insolvency programs were presented for an amount of 111,935,523. 75 euros, of which credits were first recognized for 41,409,918. 79 euros.
The disputed claims, amounting to around EUR 70. 5 million, are in the same scenario as those of KTM AG and KTM Components GmbH (“networking” claims, claims for damages, etc. ).
Subsequent court cases are expected in this proceeding.
The company recently employs 550 people. At the beginning of January 2025, there was a general layoff in general.
In this procedure too, the continuation depends on the provision of liquidity via KTM AG.
The restructuring plan meeting is also scheduled for February 25, 2025 and the final touch of the restructuring plan depends on the access of an investor to the KTM Group.
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