If you love KTM, the last few months would have been quite stressful. The Austrian maker, known for its explosive line-up of on and off-road motorcycles, has been in deep financial trouble since last year. Bad money decisions over a long period have sucked it into serious debt of almost $3 billion Euros. There is finally light at the end of the tunnel, though. The Orange family will survive as KTM has secured the funding to clear a large part of its debt at the 11th hour. The Messiah is an unheard brand in the West, but it’s also who all the experts saw saving Team Orange.
KTM Secures The Money To Remain Afloat And Pay Off Creditors
A Whopping €600 million (~$676 million)
KTM’s parent company, Pierer Mobility AG (PMG), has confirmed that it has secured the necessary funds to meet its do-or-die 23rd May deadline to pay creditors. In February 2025, a deal was crafted for KTM to live on if the automaker gave 30 percent of what the creditors owed by the 23rd of May. Things were looking brim till the 18th of this month, as there was no news on the funds. But thankfully, things have turned up as PMG has secured the needed moolah. KTM’s parent company’s official full press release states,
As announced, the creditors of KTM AG, KTM Components GmbH and KTM Forschungs & Entwicklungs GmbH approved a restructuring plan quota of 30% on February 25, 2025, payable by May 23, 2025. The total amount required to finance the quota under the three restructuring plans amounts to approx. EUR 600 million. PIERER Mobility AG and KTM AG have received financing commitments, subject to the execution of the requisite agreements, which will ensure that the quota payments to fulfill the restructuring plans of KTM AG, KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH can be fulfilled on time by May 23, 2025.
Who Is KTM’s Savior?
It Is An Indian Motorcycle Maker That Already Has A 49.9% Stake In KTM.
At the same time, as PMG confirmed its securement of funds, a regulatory filing was placed with BSE Limited (the Bombay Stock Exchange). It highlighted that the European arm of Indian motorcycle maker Bajaj Auto (Bajaj Auto International Holdings BV, or BAIH) has obtained a one-year unsecured loan from JPMorgan Chase & Co., DBS Bank LTD, and Citigroup Inc. worth 566 million euros. The reason for such a huge loan was stated to be funding for investment in the motorcycle business. Connecting the dots is simple here, and this huge loan by Bajaj was to save KTM. Bajaj later confirmed the same with a rather humorously titled official release, “Rumor Verification”. It stated:
With reference to various media reports published in the mainstream media on 18/19 May 2025,” and went on to state that “said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is for the purpose of funding the restructuring of KTM AG.
What’s Next For KTM?
The Orange Ship Will Be Afloat With A New Captain
While the worst has passed, it will not be smooth sailing for KTM anytime soon. But with enough money to go through with the restructuring and Bajaj (the makers of the world’s first CNG-powered production motorcycle) now having a 75 percent ownership in KTM, we can expect a lot of key management and functional changes. Reportedly, the Indian company has also thrown in an extra couple of hundred million Euros to the Austrian brand, so it can restart production at the earliest. However, we hope the brand to think things through and find a way to clear off its unsold stock. The figure is said to be higher than the total number of motorcycles sold in America last year!
Then there’s the saga of lay-offs and salaries not paid to its remaining workers since November. The biggest loss-making section of KTM’s business was its bicycle segment, which they are thankfully withdrawing from. This whole ordeal left many exciting motorcycles from KTM in limbo, including new models like the 1390 Super Duke GT, the 990 RCR, and many Super Adventure models. So, KTM has a lot of clean-up to do before starting something fresh. If things go well, this will be the most iconic comeback by any motorcycle brand in recent times.
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