November 30, 2024 – KTM, the Austrian manufacturer, is navigating through one of the most intricate periods in its history, as reported by foreign media.
The company, which is currently grappling with a significant financial crisis, has initiated European restructuring proceedings.
Under the terms of the Restructuring of Enterprises (RoE) regulations, KTM is required to repay its creditors the full amount of a €250 million financing, following the dismissal of hundreds of employees and the planned suspension of street motorcycle production in early 2025, as a means to avert bankruptcy.
KTM aims to reach an agreement with its creditors on the restructuring plan within 90 days. During this period, the company’s current management will maintain control over the business and implement the restructuring plan under judicial supervision.
The restructuring, however, will not affect KTM’s MotoGP aspirations, as riders Pedro Acosta, Brad Binder, Maverick Viñales, and Enea Bastianini are set to continue participating in the races.
Moreover, KTM’s involvement in the Dakar Rally has also been impacted, with the team size being halved for the 2025 event. Kevin Benavides, Luciano Benavides, and Daniel Sanders will represent the team in the competition.
Stefan Pierer, the CEO of KTM, has emphasized that despite the challenges, he will fight for the future of the company. Once the largest motorcycle manufacturer in Europe, KTM now needs to pause and regroup for its future.
