PIERER Mobility AG / KTM
February 26, 2025 update
KTM AG, a wholly owned subsidiary of PIERER Mobility AG, filed for court restructuring proceedings with self-administration on November 29, 2024.
The proceedings aimed to agree on a restructuring plan with the creditors within 90 days.
Restructuring plan adopted
At today’s restructuring plan meeting, the creditors accepted the restructuring plan submitted by KTM AG.
It provides for creditors to receive a cash quota of 30% of their claims.
This cash quota is to be paid by KTM AG to the restructuring administrator by May 23, 2025.
Gottfried Neumeister, CEO of PIERER Mobility AG
“I am grateful and happy today. KTM is back on track. Our employees have done everything over the last three months to ensure that the race can continue. We have closed an important chapter today. But a single chapter never tells the whole story. Now we can continue the great story of KTM. We do it for the millions of KTM fans worldwide, to whom we are grateful every day. For our racers, of whom we are damn proud. And for our Austrian location, to which we are deeply attached in our hearts. KTM remains one of the top employers in the Upper Austrian industry.”
Fresh capital of around EUR 800 million required
In order to finance the cash quota and further production, the Group requires fresh capital of around EUR 800 million.
Citigroup Global Markets Europe AG (“Citigroup”) was commissioned to support this investment process in a structured, transparent and efficient manner in the interests of all stakeholders
Production will be ramped up again from mid-March 2025
To enable production to be ramped up again gradually from mid-March 2025, KTM AG will be provided with financial resources totaling EUR 50 million from the extended circle of shareholders.
The planned full capacity utilisation of the four production lines in single-shift operation is to be achieved within three months.
This is not only big news for the brand and motorcycling in general but also for the region surrounding Mattighofen in Upper Austria.
Thousands of people outside KTM, with no direct ties to the company, who live and work in Upper Austria, will breathe a massive sigh of relief.
The ripple effects on the broader Austrian economy would have been catastrophic, especially given that the region had already been in an official recession for two consecutive years.
