Dirt Bikes

KTM Secures Investor To Pay Its Creditors Before Deadline

Austrian motorcycle company has received money from Indian business partner in the nick of time.

7 hours ago

KTM has reported some good news on the subject of its financial difficulties. In late February 2025, creditors of KTM AG, KTM Components GmbH, and KTM Forschungs & Entwicklungs GmbH approved a restructuring plan of 30% for every dollar owed, payable by May 23, 2025. Now, KTM’s parent organization, Pierer Mobility AG, has announced it has received funding from Indian company Bajaj Auto International Holdings BV totaling 600 million euros ($676 million), which allows the Austrian concern to pay its creditors and continue business operations.

“Today we have been given the opportunity to continue the history of KTM,” KTM AG CEO Gottfried Neumeister said. “Together with our long-standing partner Bajaj, we were able to work out a strategy that will enable us to raise a further 600 million euros for our new start in addition to the 200 million euros already made available. The existing sites—in particular our main plant in Mattighofen/Munderfing—will remain the basis for our future success. This means that we will continue to be an important employer for the entire region.”

Bajaj Auto International Holdings BV has provided 600 million euros ($676 million) to KTM so it can pay creditors and begin production again.KTM

Former KTM AG CEO Stefan Pierer will step down from the Pierer Mobility AG executive board in June 2025 following the conclusion of the restructuring. The supervisory board has appointed Verena Schneglberger-Grossmann as a new member of the executive board in the role of chief legal officer, and she will support Neumeister.

“In view of this new, second opportunity, we at KTM feel deep gratitude and humility towards all those within and outside our group of companies who have made it possible,” Neumeister said. “I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along the way. He laid the foundation for one of the world’s best-known motorcycle brands, which has a unique community.”