The crisis at KTM is intensifying with a legal dispute between Stefan Pierer, co-CEO of Pierer Mobility AG, and Stephan Zöchling, board member of Pierer Industrie AG and chairman of the supervisory board of Pierer Mobility. This dispute, centered on an €80 million loan, is complicating the restructuring of KTM, which is already facing insolvency.
The already fragile financial situation of KTM is experiencing a new twist, this time in the legal arena. Stefan pierer, co-CEO of Pierer Mobility AG and central figure of the Austrian industrial empire, filed a complaint against Stephan Zöchling, member of the group's supervisory board and… restructuring expert that he himself has appointed until the end of 2025.
At the center of this quarrel: a loan of 80 million euros granted in October 2024 by Dabepo Holding AG of Zöchling to Pierer Konzerngesellschaft mbH. In exchange, Pierer Industrie AG had pledged shares of equivalent value. Repayment was scheduled for the end of June 2025.
But according to Zöchling, the terms of the contract were violated. He accuses his mentor for not having informed Bajaj (KTM's Indian strategic partner) pre-emption rights and put options, a serious oversight that would have released it from its obligations. In response, Zöchling attempts to sell the pledged shares.
Pierer counterattacks: " the shares do not belong to him »
The boss doesn't see it that way. He says on speedweek that the loan has not yet matured and that Zöchling therefore has no right to sell these securities. A complaint has been filed with the Vienna Commercial Court. to prevent the transaction.
This battle comes as KTM is trying to finalize a fundraising of 600 million euros by May 23, an essential condition for its restructuring plan. Production, which has been stopped, will not be able to restart until July 27 — provided that the capital is raised.
But this arm wrestling between Pierre and its own recovery strategist sheds a harsh light on the internal tensions undermining the group's management in the midst of an industrial and financial crisis. While KTM struggle for survival in the markets and in its factories, the duel at the top between Pierre et Zöchling could well aggravate the loss of investor confidence.
