KTM AG’s future seems to be secured following stories in India that main shareholder Bajaj Auto is taking out a considerable mortgage to assist the Austrian firm’s debt compensation.
KTM has been navigating its method by means of a significant monetary disaster since final winter that pressured it to layoff workers, pause manufacturing and reshape its board of administrators.
Its money owed exceeded €2 billion.
Earlier this yr, KTM gained a significant battle within the regional courts of Austria when its restructuring plan was accepted by collectors.
The plan will see 30% of money owed repaid to collectors by 23 Could of this yr.
The quantity KTM wanted to make this fee was round €600 million, with quite a few firms pledging an curiosity in funding however not but signing something official.
A report from Indian media now states that Bajaj has taken out a mortgage of €566 million to permit KTM to repay its money owed.
The mortgage has been assured by JPMorgan Chase, DBS Financial institution of Singapore and Citigroup, which Bajaj Auto has confirmed.
This mortgage from Bajaj may even probably see the Indian firm achieve even better affect inside KTM.
Pierer Bajaj AG owns a majority 74.9% of KTM’s dad or mum firm Pierer Mobility AG.
Bajaj Auto has launched an announcement commenting on these stories, although hasn’t confirmed that the cash it has raised is for use on KTM’s money owed.
The complete assertion reads: “This is with reference to numerous media stories printed in the mainstream media on 18 / 19 Could 2025 and the materials value motion on 19 Could 2025 in the fairness shares of the Firm listed on BSE Ltd. and Nationwide Inventory Trade of India Ltd. The stated stories relate to our offshore wholly owned subsidiary securing a Euro 566 million mortgage from offshore lenders and speculating that the identical is for the aim of funding the restructuring of KTM AG.
“On this regard, we want to make clear that our wholly owned subsidiary, Bajaj Auto Worldwide Holdings BV, Netherlands (“Bajaj Auto BV”), is in negotiations and exploring numerous options to take part in the restructuring of KTM AG, pursuant to a plan permitted by its collectors. Involvement by Bajaj Auto BV in the restructuring as nicely as preparations in this behalf are being finalised and the Firm will make crucial disclosures at the applicable time in accordance with Regulation 30 of the Itemizing Rules.”
The way forward for KTM’s racing programmes stays unclear at this stage, with the model scaling again its variety of factory-supported riders throughout all disciplines this yr within the wake of its monetary disaster.
On the outset of KTM going into self-administration, a deliberate withdrawal from MotoGP in 2026 was talked about.
Nonetheless, KTM insists that it has no plans to cease racing in MotoGP and within the winter confirmed it has been drawing up plans for an 850cc engine for the collection’ 2027 guidelines reset.
