PIERER Mobility AG (KTM) Restructuring Plan Approved, Securing the Company
It appears KTM has put together the plan needed to emerge from self-administration, which means the company’s future appears to be secure. PIERER Mobility AG, the KTM parent company, listed new information yesterday (February 25th) on its website. While the company has found the capital needed to restart motorcycle production in mid-March, it has yet to be revealed what company, person or creditor has come to the rescue.
The statement explains that KTM will receive a one-time cash payment of 30 percent of its actual debt, but the restructuring court has accepted that this will be enough to continue operation. Essentially, this means Pierer Mobility AG and KTM will continue operation and avoid bankruptcy. If you’re looking for more detail, check out Cycle News’ report, which is one of the best explanations we've seen.
PIERER Mobility’s own statement is below.
PIERER Mobility AG: Restructuring plan of KTM AG accepted by creditors
- Cash quota of 30%, payable by May 23, 2025
- Liquidity of EUR 50 million secured for the ramp-up of production in March 2025
KTM AG, a wholly owned subsidiary of PIERER Mobility AG, applied for court restructuring proceedings with self-administration on November 29, 2024. The aim of the proceedings was to agree on a restructuring plan with the creditors within 90 days.
At today's restructuring plan meeting, the creditors accepted the restructuring plan submitted by KTM AG. This plan provides for creditors to receive a cash quota of 30% of their claims in the form of a one-off payment (cash quota). In order to fulfil the quota of 30%, KTM AG must deposit an amount of EUR 548 million with the restructuring administrator by May 23, 2025 at the latest. The court will then confirm the restructuring plan at the beginning of June 2025 and the restructuring proceedings of KTM AG will end once it becomes legally binding.
To enable production to be ramped up again gradually from mid-March 2025, KTM AG will be provided with financial resources totaling EUR 50 million from the extended circle of shareholders. With the approval of the reorganisation plan, this amount will now be transferred to KTM AG to cover the costs of the phased resumption of production in March 2025. The planned full capacity utilisation of the four production lines in single-shift operation is to be achieved within three months.
