KTM AG Pursues Judicial Restructuring with Self-Administration

KTM AG, a subsidiary of PIERER Mobility AG, is set to initiate judicial restructuring proceedings with self-administration on November 29, 2024. Faced with financing needs in the high three-digit million range, the management anticipates difficulties in securing interim financing promptly. The restructuring is aimed at reorganizing KTM Group assets while continuing management under supervision, affecting subsidiaries including KTM Components GmbH and KTM F&E GmbH, but sparing sales companies.

A key goal is to establish a reorganization plan with creditors within 90 days. This restructuring seeks not only to ensure KTM Group's long-term survival but also to lay the foundation for future resilience. Production downsizing is expected to address excess stock, reducing operating performance by over EUR 1 billion between 2025 and 2026. The process may incur additional losses from necessary write-downs, staff reductions, and decreased fixed costs, projecting a significant net loss for 2024.