The Pierer Mobility Group has announced that KTM, which is currently struggling, will enter a process called self-administration and apply for judicial restructuring. This means KTM will seek help from the court to reorganize its business.

KTM is facing serious financial problems and needs at least €100 million to keep running after 2024. The company, which competes in MotoGP, has already laid off many workers and plans to stop bike production in January and February of next year.

On Tuesday, Pierer Mobility AG, the owner of KTM, said that KTM's management was not able to secure the needed money in time, so they will start a formal restructuring process.

The restructuring will be done under self-administration, meaning KTM's current management will stay in charge, but they will work with the court to create a plan to reorganize the company.

The company hopes to reach an agreement on this plan with its creditors within 90 days. Pierer Mobility said that the goal is to make KTM's business stronger in the long run. This plan will involve reducing production and adjusting KTM's stock over the next two years, which could lead to a decrease in operations at its Austrian sites, costing more than €1 billion in 2025 and 2026.

This restructuring process will also likely cause extra losses, such as costs for reducing staff, write-offs, and other expenses linked to the restructuring.

As a result, KTM expects to report a large loss for 2024.