KTM given the go-ahead and funds to restart production in March as financial situation gets the green light after 90-day period of self-administration.

As you were or not? It’s been a busy few days in the rumour mill with some head turning stories floating about regarding the future of KTM. BMW to buy KTM was a good one, although whether that one was started by a disgruntled German employee remains unfounded…

In all seriousness, and despite the eye-watering numbers floating about, a €50 million sum is quoted as securing the future of the Austrian manufacturer in the near term for a production kick start in “mid-March 2025” followed by a €548 million figure needed by May 23 to “fulfil the 30% quota”.

Get your head around the turmoil

As a reminder, KTM AG went into self-administration last November 29, 2024 to agree on this restructuring plan with the creditors within a 90 day period.

In the meantime, we have seen the racing continuing globally (Supercross, SuperEnduro, Hard Enduro, MotoGP and MXGP) despite promotors of the Hard Enduro World Championship going out of business and the man who gave his name to the company, Stefan Pierer, standing down as CEO.

Enduro21 took a closer look at the whole situation (in plain English) here: Stefan Pierer steps down as KTM CEO

It is fair to say things are not what they used to be for the manufacturer with the largest market share in off-road, despite the annual huge drop in retail prices of many models happening earlier this month.

Anecdotally we know of dealers struggling with sales following too many bikes being forced upon them, some switching to different brands amid the chaos and demands put upon them by subsidiaries, who in turn have pressure on them from Mattighofen.

More than one conversation with those in the know these last few months has revolved around how KTM has lost sight of the traditional off-road dealership serving a community in our sport. Which is how it all started of course.

Anyway, that 90-day self-admin period came up this week with the results being the creditors accepted the restructuring plan put before them. Production will therefore pick-up again in mid-March following the initial cash injection.

“KTM AG will be provided with financial resources totalling EUR 50 million from the extended circle of shareholders” reports state, and that “four production lines in single-shift operation is to be achieved within three months.”

A small matter of raising €548 million

That’s not it, KTM AG still needs to deposit an amount of €548 million with the administrator by May 23, 2025. Where that money comes from is a source of speculation, obviously not in bike sales alone but with outside investment.

Following that figure being met by the date, the court will then confirm the restructuring plan at the beginning of June 2025 and the proceedings will come to an end once it becomes legally binding.  

As you were then everybody?