overview
- Restructuring Plan Approved: 30% Cash Allocation, Payable by May 23, 2025
- Approximately €800 million in new capital is needed
- Production is scheduled to resume in mid-March 2025.
KTM AG, a wholly owned subsidiary of PIERER Mobility AG, filed for legal reorganization proceedings through self-administration on November 29, 2024. The aim of the proceedings is to agree on a reorganization plan with creditors within 90 days.
The reorganization plan is adopted.
At the restructuring planning meeting, the creditors approved the restructuring plan submitted by KTM AG, which provides for creditors to receive a cash allocation of 30% of their claims, to be paid by KTM AG to the restructuring administrator by May 23, 2025.
PIERER Mobility AG CEO: Gottfried Neumeister
“We are filled with gratitude and joy for this result. KTM is back on track. Our employees have been working hard over the past three months to ensure that racing can continue. Today an important chapter has closed. But one chapter does not tell the whole story. Now we can continue the great KTM story. We do this for the millions of KTM fans around the world (for whom we thank you every day), for the racing riders who ride our products, which we are very proud of, and for our base in Austria, which we feel very attached to. KTM will remain one of the top employers in our industry in Upper Austria.”
Approximately 800 million euros of new capital required
The Group requires approximately €800 million in new capital to fund its cash allocation and further production. Citigroup Global Markets Europe AG (“Citigroup”) has been entrusted with supporting this investment process in a structured, transparent and efficient manner for the benefit of all stakeholders.
Production is scheduled to resume in mid-March 2025.
KTM AG will receive funding totaling €50 million from an expanded group of shareholders to gradually restart production from mid-March 2025. The plant plans to operate all four production lines at full capacity within three months, while keeping personnel costs down through single-shift operations.
