The fate of KTM is set to be decided on February 25, as creditors vote on the company’s restructuring plan—a decision that could determine whether the iconic motorcycle brand survives or collapses.

Financial Struggles

Last year, KTM entered self-administration to avoid bankruptcy after falling into a severe financial crisis. The company has debts estimated at around €2 billion. In response, KTM stopped motorcycle production and laid off a significant number of employees.

In a leadership change, their long-time CEO, Stefan Pierer, stepped down, making way for former Co-CEO Gottfried Neumeister. KTM’s parent company, Pierer Mobility Group, has also had to make tough financial cuts, such as selling its stake in MV Agusta.

Hope for Recovery

Despite these challenges, KTM has managed to stay afloat and is pushing forward with its restructuring plan. The plan, originally created to pay off 30% of its debts within two years, has now been revised. Thanks to new investments, KTM can accelerate this process. According to a report from GPOne, KTM has now secured enough funds to meet this repayment goal by May 2025.

This could be a big advantage in the upcoming creditors' vote on February 25. Major stakeholders like Bajaj and CFMoto have increased their investment in KTM, while 23 additional investors have pledged up to €900 million. Additionally, KTM plans to restart motorcycle production in March, although they need an additional €150 million to do so.

The Countdown

With February 25 approaching, KTM is at a crossroads. If the creditors approve the plan, the company may successfully survive the crisis and return to full operations. However, if the creditors reject it, the future could be catastrophic.