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MotoGP, KTM's debt rises to 2.2 billion euros. Investors desperately sought

This is what emerged today from the meeting between company executives and creditors. Debts have increased by 400 million in 5 weeks, 23 potential investors have shown interest

MotoGP: KTM's debt rises to 2.2 billion euros. Investors desperately sought

For the first time since the creditors' meeting on December 20, 2025, an important meeting of KTM managers Pierer and Neumeister, the restructuring administrator Peter Vogl, the creditors (5,400 have so far filed claims) and the credit protection association took place today in Upper Austria. On this occasion, the business plan for 2025 was reviewed and assessed, together with the restructuring measures, the current revenue situation, the dismal business figures for 2024 and the outlook for the coming financial year, when 250,000 motorcycles are to be produced with around 4,000 instead of almost 6,000 employees as soon as production starts up again at the end of February 2025 after a six-week stop.

On Thursday, long-standing CEO Stefan Pierer handed over the role of CEO of Pierer Mobility and KTM AG to his previous Co-Chief Operation Officer Gottfried Neumeister. However, he will continue to support the restructuring process as a trained "restructuring expert" with his undisputed expertise in motorcycles - as the new co-CEO. After all, Pierer has promoted the once ridiculed off-road manufacturer to Europe's leading motorcycle manufacturer through his bold visions and long-admired business instincts. Until the company's long-term expansion failed in 2023 - and sales figures plummeted by 20 percent.

Before today's examination hearing in the Ried im Innkreis district court, in addition to KTM AG, the insolvency of the subsidiaries KTM Components GmbH and KTM Forschungs- und Entwicklungs GmbH was also on the agenda. The fortunes of KTM AG are to be steered back on a sensible path by February 25 through the insolvency proceedings under its own responsibility.

According to the AKV, KTM AG currently has 3534 claims filed - 2342 claims filed by employees and around 1200 claims filed by the other insolvency creditors. The total amount of claims amounts to 2.185 billion euros, of which 1.665 million euros have been recognized so far. On December 20, there was still talk of liabilities of 1.8 billion euros. The debts have therefore increased by almost 400 million euros in the last five weeks. However, creditors fear further subsequent claims could be filed.

Restructuring administrator Peter Vogl has provisionally denied a volume of around 500 million, according to the Credit Protection Association 1870.

As early as December 20, it was determined that KTM could ultimately only be rescued by investors. The US investment bank Citigroup was commissioned to carry out the search. Today it was admitted that a total of 23 potential investors have shown interest. The exclusive report from GPOne.com that fresh capital of 900 million had already been promised has not been confirmed for the time being. KTM co-owner Bajaj Auto from India and the Chinese motorcycle manufacturer CFMOTO, two long-standing KTM partners, made binding offers back in December. Pierer Industrie AG currently holds 50.1% of the intermediate holding company Pierer Bajaj AG, Bajaj owns 49.9%. Pierer Bajaj AG holds 74% of Pierer Mobility AG, the rest of the shares are in free flow - that is 26%.

Pierer Mobility AG also cornfirmed late Thursday evening that so far "several offers from investors have been received as part of the investor process structured by Citigroup Global Markets Europe AG". The investors stated that they wanted to make financial resources available to the Pierer Group. "The financial resources should either be made available to Pierer Mobility AG for passing on to subsidiaries, especially KTM AG, or should flow directly to KTM AG or its subsidiaries," it is emphasized. Based on the offers available, financing at the level of Pierer Mobility AG, supplemented by debt instruments at the level of KTM AG or its subsidiaries, is also conceivable.

The time frame for the success of the restructuring process under own responsibility was always tight at 90 days. Now the creditors have to vote on it on February 25, 2025.

Can liquidity be ensured by then? "According to a validated continuation financial plan, the insolvency estate should have sufficient liquid funds until calendar week 8," says the AKV. Calendar week 8 covers the period between February 17 and 23. "By then, it is hoped that an agreement can also be reached with potential investors, because according to the current state of the proceedings, financing the restructuring plan quotas only seems plausible through an investor," it was announced.

Whether Stefan Pierer can remain the majority owner of the ailing group beyond February 25 will become clear in the next four weeks. According to the restructuring plan, creditors should continue to be compensated with the statutory minimum offer of 30 percent of liabilities, payable within two years. The Austrian daily newspaper “Die Presse” recently reported that some creditor banks are not satisfied with this 30% quota.

Who is Gottfried Neumeister, the new CEO

After completing his studies in international business administration at the University of Vienna, Gottfried Neumeister worked as a consultant at Siemens AG Austria. In 2003, he founded the airline company «flyniki» together with Niki Lauda and was responsible for the successful development of the aviation business (until its sale to Air Berlin).

In 2012, Gottfried Neumeister moved to DO & CO AG, where he held various positions on the Management Board, most recently (2021-2023) as Co-CEO.  DO & CO AG is a famous, well known and globally active catering company founded by Attila Dogudan, whose company originally made a name for itself as an premium class Airline caterer for «Lauda Air», and which now operates, among other things, the Haas-Haus at a prime address near the Stephansdome in Vienna and has also been responsible for the first-class catering of the Formula One VIP Villages worldwide for many years as a partner of F1 promoter Liberty Media.

Gottfried Neumeister has been Co-CEO of PIERER Mobility AG and KTM AG since September 1, 2024. He has also been a member of the Executive Board of Pierer Industrie AG since January 1, 2025.

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