KTM, the Austrian motorcycle giant, is in a serious financial crisis. At a meeting between the brand's management and the receiver on Friday, it was revealed that KTM's total debt has exceeded 2 billion euros, a figure much higher than the 1,8 billion euros initially announced. This new debt of 2.185 billion euros is linked to a combination of falling sales, overproduction, and a business expansion that has not borne fruit.
KTM had to enter into self-administration at the end of 2024, seeking solutions to avoid bankruptcy. The current restructuring plan proposes to repay only 30% of debts to creditors over a period of two years. This plan will be submitted to the creditors for a vote at a hearing scheduled for February 25. However, it seems according to GP One we Some creditors are not satisfied with this minimum offer, particularly those who believe that the proposal does not take sufficient account of their interests.
KTM also faces a large number of complaints: 3 complaints have been filed against the companyIncluding 2 347 derived from employees et 1 187 de creditors. This number could increase further, according to the Alpine Creditors Association (AKV). The company is trying to raise funds, with potential investments of up to 900 million proposed by interested investors, although these proposals have not yet been formalized. 23 potential investors have manifested themselves, and KTM entrusted the process to Citibank to find the financing necessary for its restructuring.
Latest meeting makes no mention of KTM's MotoGP program
In a context of deep crisis, KTM also confirmed the resignation of its historic CEO, Stefan pierer, who led the brand for decades and propelled it to become the leader of the European motorcycle market. Pierre gave way to Gottfried Neumeister, previously co-CEO, but he will remain involved in the restructuring process as co-CEO. This leadership change comes at a delicate time for the company, which is trying to straighten out its finances while continuing to invest in strategic projects.
Despite the financial crisis, KTM remains committed to continuing its commitment to MotoGP. The company has already planned to participate in the 2025 season of the championship and will launch its presentation on 30 janvier. There had been talk of a possible withdrawal of KTM MotoGP in a previous AKV report, but the latest meeting did not mention this possibility, indicating that the brand is still firmly committed to the competition. However, the future of KTM in the discipline remains uncertain, and the brand will have to navigate with caution in the coming months to avoid further turbulence.
Generally, KTM is going through a period of major financial turbulence, with colossal debts, serial complaints, and changes in its management. The coming months will be crucial to determine whether the brand manages to emerge from this crisis, with external investments and restructuring necessary to ensure its long-term survival.