KTM Avoids Bankruptcy Thanks to Indian Partner Bajaj

Pierer Mobility, the parent company of KTM, has been rescued thanks to a significant investment from the world's fourth-largest motorcycle manufacturer, Bajaj, which has been a partner of the Austrian firm for years with a 49.9% stake. Last Thursday, the Mattighofen offices officially announced the injection of 600 million euros received from India, thus securing the necessary funding to implement the restructuring plan approved by its creditors.

Since the major financial crisis of KTM, which led to insolvency proceedings last winter, the company has faced challenging months that hinted at bankruptcy. However, as conveyed by Gottfried Neumeister, CEO of KTM AG, a new chapter opens for the orange brand: "Today we have been given the opportunity to continue KTM's story. Together with our partner Bajaj, we have been able to devise a strategy that will allow us to allocate an additional 600 million euros to our new beginning, adding to the 200 million euros already available. The current facilities, particularly our main plant in Mattighofen/Munderfing, will continue to be the foundation of our future success.

"This means," continued Neumeister, "that we will remain a significant employer for the entire region. Faced with this new and second chance, KTM wishes to express deep gratitude, recognition, and humility towards all those, both inside and outside our business group, who have made it possible. I would also like to take this opportunity to thank Stefan Pierer on behalf of all those who have accompanied us along this journey. He laid the foundations for one of the world's most renowned motorcycle brands, which boasts a unique community of followers."

Bajaj, which had already injected 200 million euros last March to reactivate KTM's production and allow the release of stock accumulated since 2023, has once again become the lifeline for the Austrian company with a second guarantee of 600 million euros. This amount represents approximately 30% of its total debt and had to be deposited before May 23, as stipulated by the court, to satisfy part of the 2 billion euros claimed by the brand's 1,200 creditors.