KTM has been in a financial crisis, and last November, the company went into a court-supervised restructuring process which allowed the company to self-administer a repayment plan for its creditors, after its recent court hearing, the company is safe now. A majority of creditors approved a restructuring plan presented by Pierer Mobility, KTM’s parent company. The plan is a one-time payout equaling 30 percent of each approved creditor’s total declaration, which totals €548 million that has to be deposited by May 23.
KTM’s debt — What actually happened?
KTM has around 2,500 creditors — too many. As Ryan points out, KTM has been struggling with sales over the last few years, primarily owing to quality and reliability issues. A good example in India itself was the 790 Duke which was on sale here briefly. While it was an absolutely fun-to-ride machine, it was plagued with issues, and many owners – three of whom I personally know – sold them because of reliability problems.
What did BMW miss out on?
The other big news was that BMW buying KTM — which was just a rumour. However, if the German company had to buy KTM, the company would have gained a lot. For example, the off-road sport is something BMW has no presence in, while it can also officially set foot in Moto GP. That said, the Dakar Rally is another area BMW would have gained, and it would have been the king of the 1300cc platform.
However, Bajaj has invested €50 million in KTM and the company needs to secure €100 million of funding by the end of March. As of now, KTM is out of trouble and hopes to be back in the game, ready to race.