Is Red Bull KTM in big trouble?

Just reading all the KTM articles about how close they are to facing bankruptcy. Unless they can come up with a restructuring plan, by the end of December, to pay back 30% of its debt over 2 years. They will be gone. To be honest, with all this going on I'm surprised no ones been talking about all the Teams KTM has out there. Mainly the US Red Bull KTM team. We are 6.5 weeks away from A1 and there's a very real possibility that KTM goes under the week before A1. 

And if that happens, what does that mean for the everyone involved with the team?

All riders without rides, mechanics without jobs?....

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11/27/2024 7:03am

I would assume because redbull pays most of the teams bills, it would be a no brainer for the factory to keep supporting them - probably the cheapest advertising that exists for them

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The Shop

MxAddic
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11/27/2024 7:34am

I have not seen anything in regards to actual restructuring of the company. Only that they want the bond holders to take a 70% haircut.

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twotwosix
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11/27/2024 7:44am
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Adam43
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11/27/2024 7:47am

Statements will come out that the teams are fine, just fine.

But of course, the harsh elements of bankruptcy have a way of unfolding very slowly, then all at once. 

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11/27/2024 7:59am
twotwosix wrote:

The new CEO is great at reading a cue card. Lets see if he can keep the Titanic from sinking. Unlikely...

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racerxx276
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11/27/2024 8:20am

this didn't help...

KTM & Pierer Group Open New $53 Million North America Headquarters

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MxAddic
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11/27/2024 9:14am
racerxx276 wrote:

this didn't help...

KTM & Pierer Group Open New $53 Million North America Headquarters

He is crying for what is like a 1B (likely saying high xxxM for effect) hole to fill. There was a lot more going on than that.

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TeamGreen
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11/27/2024 9:19am Edited Date/Time 11/27/2024 1:59pm

I’m just wondering how long it’s gonna take to become The Bajaj KTM Company, LTD of India…? 

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kopfjaeger
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11/27/2024 9:20am

Sounds like focus will be on KTM race teams and the other brands will become secondary, maybe niche? Maybe go away. I wondered about having multiple factory teams in each series (motogp too)

3
11/27/2024 9:24am

The race teams will be fine...thanks to Redbull..

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MxAddic
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11/27/2024 9:25am Edited Date/Time 11/27/2024 9:26am
kopfjaeger wrote:
Sounds like focus will be on KTM race teams and the other brands will become secondary, maybe niche? Maybe go away. I wondered about having multiple...

Sounds like focus will be on KTM race teams and the other brands will become secondary, maybe niche? Maybe go away. I wondered about having multiple factory teams in each series (motogp too)

Actually it looks like as of today they are going to whistle past the graveyard and bet the house on getting a bail out so they can continue current operations as is.

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11/27/2024 9:31am Edited Date/Time 11/27/2024 9:32am
MxAddic wrote:

I have not seen anything in regards to actual restructuring of the company. Only that they want the bond holders to take a 70% haircut.

What a shame they haven't shared their restructure plan with you yet... Do you at least get a preferred parking spot with that KTM AG "Armchair board member of the month" badge??

If not, its a crying shame because you should.... you know more about the KTM global business than KTM does. 
 

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JazzyJJ
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11/27/2024 9:50am
Boomslang wrote:

The race teams will be fine...thanks to Redbull..

We'll see how long that lasts and if mateschitz's death has any impacts. With Monster seemingly cutting athletes it would make sense if RB was in a similar position. 

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GrapeApe
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11/27/2024 9:53am

Way too early to know what the fallout will be for KTM North America and the race teams. They haven't even filed the application for restructuring yet, much less floated a proposed restructuring plan. As long as Pierer is in charge I think they will continue to invest in racing for brand identity. If he loses control any number of things could happen. Ready to Race could turn in to Ready to Commute.

 

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MxAddic
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11/27/2024 10:14am
What a shame they haven't shared their restructure plan with you yet... Do you at least get a preferred parking spot with that KTM AG "Armchair...

What a shame they haven't shared their restructure plan with you yet... Do you at least get a preferred parking spot with that KTM AG "Armchair board member of the month" badge??

If not, its a crying shame because you should.... you know more about the KTM global business than KTM does. 
 

Damn shame the cats out of the bag.

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psmb
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Fantasy
11/27/2024 10:41am
Boomslang wrote:

The race teams will be fine...thanks to Redbull..


 

 
 
 
 
 
 
 
Heard KTM let Olly Stone, Kyle Dafoe (who worked for Sexton last year but moved to motor dept to get off road) & others go. Def some cutbacks going on over there..sucks for those guys it was this late in the hiring season. Olly is a really smart guy, some team should grab him
 
 
 
This all ready forgotten ?
 

 

 
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11/27/2024 10:55am
racerxx276 wrote:

this didn't help...

KTM & Pierer Group Open New $53 Million North America Headquarters

and in CA also...double ouch

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3
11/27/2024 10:57am
motokiwi wrote:
I would assume because redbull pays most of the teams bills, it would be a no brainer for the factory to keep supporting them - probably...

I would assume because redbull pays most of the teams bills, it would be a no brainer for the factory to keep supporting them - probably the cheapest advertising that exists for them

This. It's just a drop in the bucket when compared to F1 for example.

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11/27/2024 11:00am
GrapeApe wrote:
Way too early to know what the fallout will be for KTM North America and the race teams. They haven't even filed the application for restructuring...

Way too early to know what the fallout will be for KTM North America and the race teams. They haven't even filed the application for restructuring yet, much less floated a proposed restructuring plan. As long as Pierer is in charge I think they will continue to invest in racing for brand identity. If he loses control any number of things could happen. Ready to Race could turn in to Ready to Commute.

 

KTM: R̶e̶a̶d̶y̶ Can't afford to Race

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Paul333
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11/27/2024 11:13am

Anybody else get the impression many people in the industry are enjoying KTM having to deal with this? 

 

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2
11/27/2024 11:17am
Paul333 wrote:

Anybody else get the impression many people in the industry are enjoying KTM having to deal with this? 

 

I don't, as a KTM owner (450 SMR).

1
Beagle
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11/27/2024 11:19am
HonDawg17 wrote:
Just reading all the KTM articles about how close they are to facing bankruptcy. Unless they can come up with a restructuring plan, by the end...

Just reading all the KTM articles about how close they are to facing bankruptcy. Unless they can come up with a restructuring plan, by the end of December, to pay back 30% of its debt over 2 years. They will be gone. To be honest, with all this going on I'm surprised no ones been talking about all the Teams KTM has out there. Mainly the US Red Bull KTM team. We are 6.5 weeks away from A1 and there's a very real possibility that KTM goes under the week before A1. 

And if that happens, what does that mean for the everyone involved with the team?

All riders without rides, mechanics without jobs?....

90 days gets them to end of February, a couple of days before Daytona.

1
zehn
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11/27/2024 11:23am
Paul333 wrote:

Anybody else get the impression many people in the industry are enjoying KTM having to deal with this? 

 

Mess with the bull, get the horns?

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MxAddic
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11/27/2024 11:31am Edited Date/Time 11/27/2024 11:36am
HonDawg17 wrote:
Just reading all the KTM articles about how close they are to facing bankruptcy. Unless they can come up with a restructuring plan, by the end...

Just reading all the KTM articles about how close they are to facing bankruptcy. Unless they can come up with a restructuring plan, by the end of December, to pay back 30% of its debt over 2 years. They will be gone. To be honest, with all this going on I'm surprised no ones been talking about all the Teams KTM has out there. Mainly the US Red Bull KTM team. We are 6.5 weeks away from A1 and there's a very real possibility that KTM goes under the week before A1. 

And if that happens, what does that mean for the everyone involved with the team?

All riders without rides, mechanics without jobs?....

Beagle wrote:

90 days gets them to end of February, a couple of days before Daytona.

Although it seems the noble and righteous thing to do by forging on. I am not sure the creditors will feel the same sence of nobility.

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Flatliner
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11/27/2024 11:31am

Anyone who is involved with race teams should be looking at other options going forward.

 

It's not like the banks that were too big to fail,  KTM can fail, I hope they don't.

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resetjet
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11/27/2024 11:32am

Next new ktm model will be in 2030

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