KTM is safe again from the brink of bankruptcy! ₱36 billion (originally €600 million) in financial aid has arrived, three days before the May 23 deadline for their restructuring plan. As a result, they will be able to pay 30% to creditors and avoid the complete closure of three companies under KTM.
According to parent company Pierer Mobility, the fund will cover the payments required to implement the court-approved restructuring plan of KTM AG, KTM Components GmbH, and KTM R&D GmbH. The remaining 70% of the total ₱135 billion (originally €2.25 billion) of debt will be forgiven as part of the agreement. It is possible that partner Bajaj Auto from India will help, after it recently raised ₱33.96 billion (originally €566 million).
While this is good news for the ‘Ready to Race’ motorcycle, it cannot be denied that they have been through a difficult time. More than 1,850 jobs have been lost, sales have dropped by almost 60,000 units, and they have also left the bicycle market. In the next step, the ₱36B will be deposited and the court is expected to approve the entire plan in June.
