KTM Clears Major Hurdle
K
TM's creditors have approved
the company's restructuring
plan after a vote at the regional
court in Ried im Innkreis, Upper
Austria. Claims against KTM
presented totaled €2.25 billion
($2.36 billion), with €2 billion
($2.1 billion) recognized.
The plan includes
a 30 percent cash
payout (€600 mil
-
lion/$630 million) by
the end of May and
€150 million ($157 mil
-
lion) to restart production
in mid-March, securing
operations for its 2000
employees.
A hearing in Austria on
February 25 saw 3847
claims filed and around
100 people in attendance,
including KTM CEO
Gottfried Neumeister and
co-CEO Stefan Pierer. It
was disclosed that KTM AG
owed €1.3 billion ($1.36 billion)
to 180 banks. These entities ini
-
tially demanded a higher payout
ratio, raising doubts about the
plan's approval. However, by the
afternoon of February 25, the
creditors had accepted the 30
percent terms.
Pierer Mobility AG stated
that creditors would receive
30 percent of their claims as
a one-time payment. KTM AG
must deposit €548 million ($576
million) with the restructur
-
ing administrator by May 23,
2025. The court will confirm the
restructuring plan in early June,
concluding KTM AG's restructur
-
ing proceedings once it be-
comes legally binding.
The approval was granted
despite opposition from U.S.
hedge fund Whitebox Advisors,
who bought up a large portion
of KTM's debt in the hope they
could pressure the company into
repaying more than just 30 per
-
cent of the outstanding amount.
This was partly successful, as
KTM will pay the 30 percent
within two months, not the two
years as required by Austrian
law.
The financial settlement
means KTM's production line
can start again from mid-March,
with €50 million ($52 million)
from shareholders covering
March costs. Pierer Mobility AG
aims to reach full single-shift
capacity on four production lines
within three months.
At the time of writing, votes
were still to be held on restruc
-
turing plans for KTM Compo-
nents GmbH and KTM Forschun-
gs- & Entwicklungs GmbH. The
WIND
IN THE
P28
Things are looking brighter for KTM.
