Image: Octopi Media.

KTM has received critical approval from creditors for its restructuring strategy that will see the Austrian manufacturer resume production and effectively get business back on track over the course of the next month.

A wholly owned subsidiary of Pierer Mobility AG, KTM AG filed for the court proceedings with self-administration in November last year, facing a race against time of within 90 days to submit a plan that would secure its future.

It was voted and agreed on Tuesday at a regional court in Austria’s Ried im Innkreis that creditors will receive a cash quota of 30 percent of their claims, to be paid by KTM to the administrator by May 23, 2025. Fresh capital of around EUR 800-million ($840m USD) will be sought, with Citigroup Global Markets Europe AG commissioned to lead that procedure.

“I am grateful and happy today,” stated Gottfried Neumeister, CEO of Pierer Mobility AG. “KTM is back on track. Our employees have done everything over the last three months to ensure that the race can continue. We have closed an important chapter today. But a single chapter never tells the whole story.

“Now we can continue the great story of KTM. We do it for the millions of KTM fans worldwide, to whom we are grateful every day. For our racers, of whom we are damn proud. And for our Austrian location, to which we are deeply attached in our hearts. KTM remains one of the top employers in the Upper Austrian industry.”

Production will gradually resume in Mattighofen from mid-March, leveraging a EUR 50-million ($52m USD) investment from KTM AG’s extended group of shareholders, understood to be Indian investor Bajaj Auto – already owning a 49.9 stake in the business. Full capacity production across the four lines in a single-shift operation is expected within three months.

Despite its financial uncertainty, KTM Factory Racing has been exceptionally successful to date in 2025, winning the Dakar Rally with Daniel Sanders, in contention for AMA Supercross titles with Chase Sexton (450SX) and Julien Beaumer (250SX West), and also preparing to commence its MotoGP and MXGP campaigns beginning this weekend at the opening rounds.