Pierer Industrie AG, the company that indirectly owns KTM, has managed to avoid bankruptcy after successfully completing a financial restructuring process.

How Pierer Industrie AG restructured its debts

On Thursday, creditors gathered at the regional court in Wels, Austria, to vote on a restructuring plan for Pierer Industrie AG. This marked the first time Austria applied the new European restructuring directive, which has been effective since June 2021. The directive allows companies that are struggling financially—but are not bankrupt—to restructure their debts under court supervision. This gives them a chance to recover before they reach insolvency.

Pierer Industrie AG has a debt of €247.5 million and had a plan to extend their payment period over two years instead of paying the full amount immediately. The main focus of the plan was to extend the due dates of existing loans and bonds. The court hearing lasted about an hour, and the creditors accepted the company’s proposal. Now, the company has until December 31, 2026, and December 31, 2027, to manage their debts.

Pierer Industrie AG owns 50.1% of Pierer Bajaj AG, which in turn holds a 74.94% stake in KTM’s parent company, Pierer Mobility AG. The company also has an 80% stake in Pankl AG, an automotive parts supplier.

Restructuring Vote for KTM

While Pierer Industrie AG has secured its future for now, KTM still faces major financial problems. On February 25, 2025, a court in Ried im Innkreis will decide on KTM AG’s restructuring plan.

KTM has accumulated more than €2 billion in debt from 1,170 creditors, including banks and suppliers. Additionally, around 2,500 employees have filed claims. By law, creditors must be repaid at least 30% of the outstanding amount. KTM has improved its repayment plan by offering to pay this 30% in cash by the end of May 2025, instead of spreading it over two years.

To make this possible, KTM’s owners, new investors, and banks plan to provide around €600 million by mid-April. Recently, US hedge fund Whitebox has pushed for an even higher repayment rate.

Race Against Time

Meanwhile, KTM is working hard to restart production at its factory in Mattighofen by mid-March. The company claims to have already secured the required €150 million in funding to make this happen. However, everything depends on the creditors’ vote on February 25.