KTM’s creditors have approved the company’s restructuring plan after a vote at the regional court in Ried im Innkreis, Upper Austria. Claims against KTM presented totaled €2.25 billion ($2.36 billion), with €2 billion ($2.1 billion) recognized.
The plan includes a 30 percent cash payout (€600 million/$630 million) by the end of May and €150 million ($157 million) to restart production in mid-March, securing operations for its 2000 employees.
Today’s Austrian hearing saw 3847 claims filed and around 100 people in attendance, including KTM CEO Gottfried Neumeister and co-CEO Stefan Pierer. It was disclosed that KTM AG owed €1.3 billion ($1.36 billion) to 180 banks. These entities initially demanded a higher payout ratio, raising doubts about the plan’s approval. However, by the afternoon of February 25, the creditors had accepted the 30 percent terms.
Pierer Mobility AG stated that creditors would receive 30 percent of their claims as a one-time payment. KTM AG must deposit €548 million ($576 million) with the restructuring administrator by May 23, 2025. The court will confirm the restructuring plan in early June, concluding KTM AG’s restructuring proceedings once it becomes legally binding.
The approval was granted despite opposition from US hedge fund Whitebox Advisors, who bought up a large portion of KTM’s debt in the hope they could pressure the company into repaying more than just 30 percent of the outstanding amount. This was partly successful, as KTM will pay the 30 percent within two months, not the two years as required by Austrian law.
The financial settlement means KTM’s production line can start again from mid-March, with €50 million ($52 million) from shareholders covering March costs. Pierer Mobility AG aims to reach full single-shift capacity on four production lines within three months.
At the time of writing, votes were still to be held on restructuring plans for KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH. The monies owed involved smaller amounts and are expected to be approved.
The Alpine Creditors Association (AKV) said judicial confirmation depends on the €150 million ($1.57 million) continuation costs being deposited by May 23, 2025. The first amount of €50 million ($52 million) was placed in a trust account on Monday, February 24. In total, €750 million ($788 million) must be secured by the May 25 deadline.
KTM’s creditors have approved the company’s restructuring plan after a vote at the regional court in Ried im Innkreis, Upper Austria. Claims against KTM presented totaled €2.25 billion ($2.36 billion), with €2 billion ($2.1 billion) recognized.
The plan includes a 30 percent cash payout (€600 million/$630 million) by the end of May and €150 million ($157 million) to restart production in mid-March, securing operations for its 2000 employees.
Today’s Austrian hearing saw 3847 claims filed and around 100 people in attendance, including KTM CEO Gottfried Neumeister and co-CEO Stefan Pierer. It was disclosed that KTM AG owed €1.3 billion ($1.36 billion) to 180 banks. These entities initially demanded a higher payout ratio, raising doubts about the plan’s approval. However, by the afternoon of February 25, the creditors had accepted the 30 percent terms.
Pierer Mobility AG stated that creditors would receive 30 percent of their claims as a one-time payment. KTM AG must deposit €548 million ($576 million) with the restructuring administrator by May 23, 2025. The court will confirm the restructuring plan in early June, concluding KTM AG’s restructuring proceedings once it becomes legally binding.
The approval was granted despite opposition from US hedge fund Whitebox Advisors, who bought up a large portion of KTM’s debt in the hope they could pressure the company into repaying more than just 30 percent of the outstanding amount. This was partly successful, as KTM will pay the 30 percent within two months, not the two years as required by Austrian law.
The financial settlement means KTM’s production line can start again from mid-March, with €50 million ($52 million) from shareholders covering March costs. Pierer Mobility AG aims to reach full single-shift capacity on four production lines within three months.
At the time of writing, votes were still to be held on restructuring plans for KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH. The monies owed involved smaller amounts and are expected to be approved.
The Alpine Creditors Association (AKV) said judicial confirmation depends on the €150 million ($1.57 million) continuation costs being deposited by May 23, 2025. The first amount of €50 million ($52 million) was placed in a trust account on Monday, February 24. In total, €750 million ($788 million) must be secured by the May 25 deadline.
KTM’s creditors have approved the company’s restructuring plan after a vote at the regional court in Ried im Innkreis, Upper Austria. Claims against KTM presented totaled €2.25 billion ($2.36 billion), with €2 billion ($2.1 billion) recognized.
The plan includes a 30 percent cash payout (€600 million/$630 million) by the end of May and €150 million ($157 million) to restart production in mid-March, securing operations for its 2000 employees.
Today’s Austrian hearing saw 3847 claims filed and around 100 people in attendance, including KTM CEO Gottfried Neumeister and co-CEO Stefan Pierer. It was disclosed that KTM AG owed €1.3 billion ($1.36 billion) to 180 banks. These entities initially demanded a higher payout ratio, raising doubts about the plan’s approval. However, by the afternoon of February 25, the creditors had accepted the 30 percent terms.
Pierer Mobility AG stated that creditors would receive 30 percent of their claims as a one-time payment. KTM AG must deposit €548 million ($576 million) with the restructuring administrator by May 23, 2025. The court will confirm the restructuring plan in early June, concluding KTM AG’s restructuring proceedings once it becomes legally binding.
The approval was granted despite opposition from US hedge fund Whitebox Advisors, who bought up a large portion of KTM’s debt in the hope they could pressure the company into repaying more than just 30 percent of the outstanding amount. This was partly successful, as KTM will pay the 30 percent within two months, not the two years as required by Austrian law.
The financial settlement means KTM’s production line can start again from mid-March, with €50 million ($52 million) from shareholders covering March costs. Pierer Mobility AG aims to reach full single-shift capacity on four production lines within three months.
At the time of writing, votes were still to be held on restructuring plans for KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH. The monies owed involved smaller amounts and are expected to be approved.
The Alpine Creditors Association (AKV) said judicial confirmation depends on the €150 million ($1.57 million) continuation costs being deposited by May 23, 2025. The first amount of €50 million ($52 million) was placed in a trust account on Monday, February 24. In total, €750 million ($788 million) must be secured by the May 25 deadline.
KTM’s creditors have approved the company’s restructuring plan after a vote at the regional court in Ried im Innkreis, Upper Austria. Claims against KTM presented totaled €2.25 billion ($2.36 billion), with €2 billion ($2.1 billion) recognized.
The plan includes a 30 percent cash payout (€600 million/$630 million) by the end of May and €150 million ($157 million) to restart production in mid-March, securing operations for its 2000 employees.
Today’s Austrian hearing saw 3847 claims filed and around 100 people in attendance, including KTM CEO Gottfried Neumeister and co-CEO Stefan Pierer. It was disclosed that KTM AG owed €1.3 billion ($1.36 billion) to 180 banks. These entities initially demanded a higher payout ratio, raising doubts about the plan’s approval. However, by the afternoon of February 25, the creditors had accepted the 30 percent terms.
Pierer Mobility AG stated that creditors would receive 30 percent of their claims as a one-time payment. KTM AG must deposit €548 million ($576 million) with the restructuring administrator by May 23, 2025. The court will confirm the restructuring plan in early June, concluding KTM AG’s restructuring proceedings once it becomes legally binding.
The approval was granted despite opposition from US hedge fund Whitebox Advisors, who bought up a large portion of KTM’s debt in the hope they could pressure the company into repaying more than just 30 percent of the outstanding amount. This was partly successful, as KTM will pay the 30 percent within two months, not the two years as required by Austrian law.
The financial settlement means KTM’s production line can start again from mid-March, with €50 million ($52 million) from shareholders covering March costs. Pierer Mobility AG aims to reach full single-shift capacity on four production lines within three months.
At the time of writing, votes were still to be held on restructuring plans for KTM Components GmbH and KTM Forschungs- & Entwicklungs GmbH. The monies owed involved smaller amounts and are expected to be approved.
The Alpine Creditors Association (AKV) said judicial confirmation depends on the €150 million ($1.57 million) continuation costs being deposited by May 23, 2025. The first amount of €50 million ($52 million) was placed in a trust account on Monday, February 24. In total, €750 million ($788 million) must be secured by the May 25 deadline.
