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KTM AG, which entered insolvency proceedings on November 29th, 2024, stopped their motorcycle production on December 13th, 2024, and will resume it on March 17th, 2025. According to their new business plan, the goal is to produce about 230,000 motorcycles for the upcoming financial year.
Thanks to the capital increase with the help of its current shareholders, such as Bajaj and CFMOTO, as well as more than 23 new investors who presented binding letters of intent, between 600 and 900 million Euros in fresh money have been pledged in the last two months. In the course of the insolvency proceedings, creditors (including 180 banks) were promised a share of 30% within two years. A week ago, however, the Pierer Group, with the KTM, Husqvarna, and GASGAS brands, was able to announce that there is now enough money to pay off the promised 30% of the debt by the end of May 2025, if the creditors approve the restructuring plan with abour 4,000 instead of 6,000 employees on February 25th.
At Pierer Mobility AG, 52-year-old Gottfried Neumeister, who was hired by 68-year-old Stefan Pierer since September, has taken over as CEO. Pierer has stepped back and is now acting as Co-CEO. Stephan Zöchling, CEO and co-owner of the exhaust manufacturer, Remus, was newly elected chairman of the supervisory board. Zöchling has also already declared that he will contribute a substantial sum of millions to the rescue of Europe's largest motorcycle manufacturer.
As already announced on February 12th, 2025, KTM AG intends to resume production at the Austrian locations starting mid-March 2025. Financial resources of 150 million Euros are required in the short term for them to resume production.
KTM AG is working on this, and advanced discussions are being held to provide the liquidity of the 150 million Euros required to resume production. However, this only applies if the current restructuring plan with a share of 30%, payable by the end of May 2025, is approved at the restructuring plan meeting on February 25th, 2025.
The restructuring administrator, Peter Vogl, explained: "If the restructuring plan is rejected, the result will be bankruptcy."
Vogl also predicts a break-up share of 14.9% for this case and points out various potentials and risks that will arise from the break-up of the entire Pierer Group in the event of bankruptcy. Based on this forecast, Vogl added: "In view of this break-up share, the restructuring plan share of 30% offered by KTM AG should be considered appropriate."
The alternative offer made to the creditors by the US capital company, Whitebox Advisors LLC, New York, is not feasible under applicable Austrian law. Whitebox Advisors LLC wants 45% or more for a group of creditors.
Furthermore, the alternative offer from the USA only gives creditors the possibility of an improvement if they waive their share during the first step and also provide additional financing.
Peter Vogl is convinced, that the offer from KTM AG provides for a significantly better share for the creditors. On November 25th, debts of 1.8 billion Euros were identified, and creditors have since reported liabilities of 2.2 billion Euros.
The share price of Pierer Mobility AG fell to 8,20 Euros in November, increasing 4.10% today alone, therefore, it is now at 20,30 Euros. A clear indication that investors firmly believe in the future of the renowned motorcycle company again that, with the slogan, "Ready to Race", wants to ensure success in all major motorcycle racing series, also in 2025, and has 40 factory riders under contract. The KTM line up includes Brad Binder and Pedro Acosta (4th place at the Buriram MotoGP test last week) in the Red Bull KTM Factory team and Maverick Viñales and Enea Bastianini riding for the Red Bull Tech3 KTM Factory team in the upcoming season.
In 2025, the Pierer Group has already won it’s 23rd Dakar Rally in 26 years and popular races in the US Supercross Series, with series leader Chase Sexton (KTM) and also Malcolm Stewart (Husqvarna).
