Will KTM become a Chinese funded brand?
Three primary investors show interest in KTM
Maybe keeping KTM operational is in the industry’s best interest
There are three arms of the KTM Group that are currently going through insolvency proceedings in Austria. KTM AG, the R&D arm KTM Forschungs & Entwicklungs GmbH, and the components arm KTM Components GmbH.
These three groups have estimated liabilities of 2.9 billion Euros, and its owed to about 2,500 creditors. The restructuring administrator, Alpenländischer Kreditorenverband Europa (AKV) is still urging creditors to come forward and join the case. KTM AG is responsible for approximately 2.7 billion of this liability. Creditors are to register as part of the proceedings latest by January 16, 2025. A finalized restructuring plan is to be announced on February 25, 2025.
Pierer Mobility AG is associating with Citibank to find investors eager to step in and share this debt burden. Austrian business publication Der Standard has mentioned that binding offers must be submitted no later than middle of January 2025.
Bajaj Auto Limited already owns part of both Pierer Mobility and KTM AG and is interested in investing. Also of course, KTM’s other manufacturing partner, CFMoto, has expressed investor-level interest in Pierer Mobility in this scenario. KTM has been CFMoto’s exclusive distributor in Europe since 2023. This means CFMoto needs KTM to survive for its own sales as well.
Bajaj is reportedly ready to invest up to 300 million Euros in Pierer Mobility AG’s recovery efforts. CFMoto is offering the possible investment amount range between 350 and 700 million Euros to support restructuring efforts of Pierer Mobility AG. Hong Kong-based private equity firm called Fountainvest is also keen on investing in debt ridden European brand.
Meanwhile KTM AG workers have not been paid wages since November 2024….forget about any Christmas bonus.
—Wayfarer
