KTM to file for Bankruptcy/ Self Restructuring on Friday

dadofagun
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Fantasy
1/8/2025 7:05am
MONEY. wrote:
Unless you plan on running all aftermarket parts it's time to switch brands. Austria has stopped paying their vendors and NA will soon follow suit. Stock...

Unless you plan on running all aftermarket parts it's time to switch brands. Austria has stopped paying their vendors and NA will soon follow suit. Stock parts are going to be extremely hard to find and most likely will only be available for warranty jobs. Once race season is in full effect obtaining OEM parts will be near impossible. I’ve been an “orange bleeder” for over a decade but know it’s time to make a change. 

Team403 wrote:
Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain...

Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain to be safe.😞

If they aren’t paying vendors, I would stock up on any OEM parts you think you might need for the foreseeable future.

Now that the shit has hit the NA fan, and OEM parts could become super hard to get, I really hate it for racing families.  The little bike classes are dominated by Austria.  Maybe now would be a great time for Kaw to revamp their mini cycle lineup,,,,,or Honda, Zook, etc......

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1/8/2025 7:11am
Team403 wrote:

So if a Chinese buyer steps in  - is it possible for the premium brand connotation to survive?  I have a hard time envisioning this🤔

Marty1028 wrote:
IMO, no because the average consumer in our sport HATES china, even though they buy shit every day from there and that they are morons. When...

IMO, no because the average consumer in our sport HATES china, even though they buy shit every day from there and that they are morons. When PMG moved single cylinder low displacement street bikes to china and indian production facilities, all i heard at local tracks were how KTM/GG/Huskys were all now “piles of chinese shit” and that they wouldn’t buy one. No one would read that the bikes were still made in austria….

I heard that numerous times as well. Bad info spread all over the place. I'm sure they source parts from China and India but the offroad...

I heard that numerous times as well. Bad info spread all over the place. I'm sure they source parts from China and India but the offroad bikes are still assembled in Austria. 

I'm guessing that ALL manufacturers source parts from China. This reminds me of the inane "made in America" discussions in the auto industry. 

JMX82
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1/8/2025 7:13am
Spoonguy wrote:
Screwed over their employees as well. As a business owner myself, on a much much smaller scale, I wake up every morning thinking of the responsibility...

Screwed over their employees as well. As a business owner myself, on a much much smaller scale, I wake up every morning thinking of the responsibility I have to my customers, suppliers, and employees. Evidently KTM doesn't. Doesn't KTM make frames for Rieju, Sherco, Fantic, and Beta along with other components?

I think WP does the frames but it's owned by PMG also as far as I know 

MxAddic
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1/8/2025 7:20am
Team403 wrote:
Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain...

Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain to be safe.😞

If that ends up being the case bikes sales would be impacted almost certainly.

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The Shop

Beta Enjoyer
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1/8/2025 7:45am
bvm111 wrote:

time to buy some stock

Don't catch a falling knife...

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MONEY.
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1/8/2025 8:02am

My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is starting to become futile as 3billion is a massive debt. If the company is to survive, which I hope it does, production will have to  be moved to Baja India or China. The court system working with the company on the 90 day restructure have run out of options to keep production in Austria. It really sucks to see a Motorsports manufacture go under due to poor management but my heart really goes out to the dealers. They are the backbone of this company and running blind. 

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Team403
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1/8/2025 8:11am
MONEY. wrote:
My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is...

My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is starting to become futile as 3billion is a massive debt. If the company is to survive, which I hope it does, production will have to  be moved to Baja India or China. The court system working with the company on the 90 day restructure have run out of options to keep production in Austria. It really sucks to see a Motorsports manufacture go under due to poor management but my heart really goes out to the dealers. They are the backbone of this company and running blind. 

Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM is racing because they don’t have the balls to pull the plug to save the core biz.  Seems like they should be circling the wagons and rolling up their sleeves.

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JazzyJJ
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1/8/2025 8:19am
Team403 wrote:
Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain...

Well that doesn’t sound great.  As owner and fan of the brand I hope it doesn’t get this bad.  Guess I should order a timing chain to be safe.😞

If they aren’t paying vendors, I would stock up on any OEM parts you think you might need for the foreseeable future.

dadofagun wrote:
Now that the shit has hit the NA fan, and OEM parts could become super hard to get, I really hate it for racing families.  The...

Now that the shit has hit the NA fan, and OEM parts could become super hard to get, I really hate it for racing families.  The little bike classes are dominated by Austria.  Maybe now would be a great time for Kaw to revamp their mini cycle lineup,,,,,or Honda, Zook, etc......

Even if they do, that's gotta be a couple year process to design and manufacture, right? Not my profession but it doesn't seem like something that could be flipped over night, especially with the slower moving Japanese brands. 

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MxAddic
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1/8/2025 8:19am
Team403 wrote:
Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM...

Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM is racing because they don’t have the balls to pull the plug to save the core biz.  Seems like they should be circling the wagons and rolling up their sleeves.

Not if you have known the whole time the only way out is a gimme.

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Team403
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1/8/2025 9:12am
Team403 wrote:
Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM...

Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM is racing because they don’t have the balls to pull the plug to save the core biz.  Seems like they should be circling the wagons and rolling up their sleeves.

MxAddic wrote:

Not if you have known the whole time the only way out is a gimme.

Not sure I follow you

Tim507
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1/8/2025 9:18am

The only constant is change. 

KTM is now in change and will rise again as a much smaller company.

The 100$ question yet to be answered is who will be driving the bus.

I’d venture that decision will be made public in the next meeting.

Starting over is not a bad thing unless you choose to create that attitude.

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MxAddic
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1/8/2025 9:22am Edited Date/Time 1/8/2025 9:25am
Team403 wrote:
Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM...

Yeah this what really pisses me off - we have a great local dealer that is very involved.  If this true I hate to think KTM is racing because they don’t have the balls to pull the plug to save the core biz.  Seems like they should be circling the wagons and rolling up their sleeves.

MxAddic wrote:

Not if you have known the whole time the only way out is a gimme.

Team403 wrote:

Not sure I follow you

I have been saying the whole time Stefan has been acting in a manner that led me to believe he knew it was way too late by the time he disclosed..The only out was a 1B loan on a handshake.

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NV825
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1/8/2025 9:23am
MONEY. wrote:
My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is...

My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is starting to become futile as 3billion is a massive debt. If the company is to survive, which I hope it does, production will have to  be moved to Baja India or China. The court system working with the company on the 90 day restructure have run out of options to keep production in Austria. It really sucks to see a Motorsports manufacture go under due to poor management but my heart really goes out to the dealers. They are the backbone of this company and running blind. 

Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All the restructuring will still be needed to show they can get back to black, but I wonder if there's anything that could block that if there are private suitors looking to take it over. 

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Team403
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1/8/2025 9:40am
MxAddic wrote:

Not if you have known the whole time the only way out is a gimme.

Team403 wrote:

Not sure I follow you

MxAddic wrote:
I have been saying the whole time Stefan has been acting in a manner that led me to believe he knew it was way too late...

I have been saying the whole time Stefan has been acting in a manner that led me to believe he knew it was way too late by the time he disclosed..The only out was a 1B loan on a handshake.

Gotcha - question how did the banks not see this given presumed quarterly covenant disclosures?  

lukaitis9
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1/8/2025 9:47am

Something interesting today. 

Race Husky in 2025 with Contingency and Trackside Support Programs

Contingency will once again be available at both national and regional events motocross, supercross, flat track, and offroad racing through RaceHusky.com. Professional racers can earn Husqvarna Motorcycles Pro Cash awards, which are paid directly through a debit card.

Amateur riders are eligible to earn cash value credits that can be used to purchase products at any participating authorized Husqvarna Motorcycles dealership in North America. A more competitive pay structure will be implemented throughout the 2025 events.
Plus, Husqvarna Motorcycles will also continue to offer Trackside Support at major national racing events throughout the year to provide any emergency parts and service needed to get back out on track.
To view participating series and payouts or to register for the 2025 contingency, visit RaceHusky.com or find an authorized Husqvarna Motorcycles dealer near you.

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lukaitis9
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1/8/2025 9:49am
lukaitis9 wrote:
Something interesting today. Race Husky in 2025 with Contingency and Trackside Support ProgramsContingency will once again be available at both national and regional events motocross...

Something interesting today. 

Race Husky in 2025 with Contingency and Trackside Support Programs

Contingency will once again be available at both national and regional events motocross, supercross, flat track, and offroad racing through RaceHusky.com. Professional racers can earn Husqvarna Motorcycles Pro Cash awards, which are paid directly through a debit card.

Amateur riders are eligible to earn cash value credits that can be used to purchase products at any participating authorized Husqvarna Motorcycles dealership in North America. A more competitive pay structure will be implemented throughout the 2025 events.
Plus, Husqvarna Motorcycles will also continue to offer Trackside Support at major national racing events throughout the year to provide any emergency parts and service needed to get back out on track.
To view participating series and payouts or to register for the 2025 contingency, visit RaceHusky.com or find an authorized Husqvarna Motorcycles dealer near you.

KTM too 

KTM CONTINGENCY AND TRACKSIDE SUPPORT LAUNCHED FOR 2025

The brand is offering more than $6 million in race rewards for amateur and professional racers at select national events throughout the United States, alongside an industry-leading Trackside Support program at select series, dedicated to keep racers racing!


From motocross and supercross, to the premier offroad series in the professional ranks, the KTM brand remains READY TO RACE with a competitive payout via the KTM Pro Cash debit card.

In addition, the KTM Cash dealer credit program provides amateur riders the chance to earn cash value credits that can be used to purchase KTM products at any participating KTM North America dealership.


Those KTM incentives are offered to amateur (dealer credits) and professional (cash) riders when they earn top finishes while riding KTM motorcycles at select national racing events across the country.

For more information on the payout structures for 2025 national offroad, motocross and supercross series, visit KTMCash.com. The full 2025 KTM Orange Brigade Contingency program, complete with regional and local events, will be announced at a later date.


Also, back for the new year, KTM’s Trackside Support will be available for all Orange Brigade and KTM-brand riders alike at select national races across the country, where Orange bleeders can expect emergency parts and service to keep you READY TO RACE.

 

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MxAddic
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1/8/2025 9:57am
Team403 wrote:

Gotcha - question how did the banks not see this given presumed quarterly covenant disclosures?  

That's the 3€ Billion question.

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MBR
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1/8/2025 10:11am
NV825 wrote:
Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All...

Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All the restructuring will still be needed to show they can get back to black, but I wonder if there's anything that could block that if there are private suitors looking to take it over. 

I heard that this is happening.

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MxAddic
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1/8/2025 10:15am Edited Date/Time 1/8/2025 10:20am
NV825 wrote:
Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All...

Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All the restructuring will still be needed to show they can get back to black, but I wonder if there's anything that could block that if there are private suitors looking to take it over. 

MBR wrote:

I heard that this is happening.

I have a hard time understanding how that could work?

Would they just give them a 1Bil handout, part owner, more debt they can't pay back? it only gets more complicated from there.

Sounds like the creditors have had just about enough of Pierer and I suspect the Austrian Gov. has as well.

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Tim507
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1/8/2025 10:17am Edited Date/Time 1/8/2025 10:49am
MONEY. wrote:
My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is...

My inside source at NA said employees are all prepared for the worst. Major cut backs yesterday while more are expected today. The restructuring process is starting to become futile as 3billion is a massive debt. If the company is to survive, which I hope it does, production will have to  be moved to Baja India or China. The court system working with the company on the 90 day restructure have run out of options to keep production in Austria. It really sucks to see a Motorsports manufacture go under due to poor management but my heart really goes out to the dealers. They are the backbone of this company and running blind. 

NV825 wrote:
Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All...

Could the Austrian government come in from left field to help provide an emergency "too big to fail" loan to keep KTM in their country? All the restructuring will still be needed to show they can get back to black, but I wonder if there's anything that could block that if there are private suitors looking to take it over. 

IMO from years of following the changing world we live in, no way will the Austrian Government bailout KTM. I do have an open mind and anything is possible.

In the months to come the world financial structure is going to change. Banking will take on a new look with the QFS and XRP. 

Banksters will cease to exist.

KTM is but one of the businesses world wide that is experiencing these changes.

We all care and love our dirt bike experiences and thus we are sensitive to this change.

Research NESARA GESARA 

Always keep an open and heartfelt mind as we create what we choose to believe (Good and Bad)

This is a better choice for Austria, bail out the citizens that worked at KTM and get a better ROI😍

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sandman768
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1/8/2025 10:21am

Going to find out soon what the Austrian government IMG 3735 0thinks about KTM failing…

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JMX82
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1/8/2025 10:31am
MxAddic wrote:
I have a hard time understanding how that could work?Would they just give them a 1Bil handout, part owner, more debt they can't pay back? it...

I have a hard time understanding how that could work?

Would they just give them a 1Bil handout, part owner, more debt they can't pay back? it only gets more complicated from there.

Sounds like the creditors have had just about enough of Pierer and I suspect the Austrian Gov. has as well.

Can you please stop posting to this topic. It's getting annoying when every third post is posted by you and your posts aren't bringing anything new to this conversation. Take a break and go ride your kawi and stop the senseless spamming 

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Money
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1/8/2025 10:51am

Does ktm cut ties with Aldon soon? He is on the books with a retainer to keep other brands from riding there. And they have sunk a ton of $$ into his facility. Would think there’s some serious pay cuts coming for people like rog and ian. 

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MOTO13
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1/8/2025 11:15am

I find it astonishing that a bankrupt company that owes hundreds of millions, has unpaid employees and has way to much inventory it can't sell, is even legally allowed to spend money on a race team effort. Makes no sense. There is no way Sexton is getting dime one from the factory for any type of win/place or show. This simply doesn't add up. 

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JazzyJJ
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1/8/2025 11:21am
MOTO13 wrote:
I find it astonishing that a bankrupt company that owes hundreds of millions, has unpaid employees and has way to much inventory it can't sell, is...

I find it astonishing that a bankrupt company that owes hundreds of millions, has unpaid employees and has way to much inventory it can't sell, is even legally allowed to spend money on a race team effort. Makes no sense. There is no way Sexton is getting dime one from the factory for any type of win/place or show. This simply doesn't add up. 

So if a company is struggling, you expect them to stop trying to sell their products?

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GrapeApe
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1/8/2025 11:27am Edited Date/Time 1/8/2025 11:27am
MOTO13 wrote:
I find it astonishing that a bankrupt company that owes hundreds of millions, has unpaid employees and has way to much inventory it can't sell, is...

I find it astonishing that a bankrupt company that owes hundreds of millions, has unpaid employees and has way to much inventory it can't sell, is even legally allowed to spend money on a race team effort. Makes no sense. There is no way Sexton is getting dime one from the factory for any type of win/place or show. This simply doesn't add up. 

Dirt bike racing is a cheap* way to keep some public semblance of normalcy while continuing to push sales and maintaining value in the brand. Don't worry, if the stakeholders and decision makers think dirt bike racing would compromise a successful restructuring they will pull the plug.

*MotoGP is a money suck and a different story . . .

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MxAddic
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1/8/2025 11:28am
JMX82 wrote:
Can you please stop posting to this topic. It's getting annoying when every third post is posted by you and your posts aren't bringing anything new...

Can you please stop posting to this topic. It's getting annoying when every third post is posted by you and your posts aren't bringing anything new to this conversation. Take a break and go ride your kawi and stop the senseless spamming 

break
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Team403
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1/8/2025 11:36am

Someone report back from A1 on the mood in the KTM pits. 

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MOTO13
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1/8/2025 11:37am

I'd expect them to pay their frigging employees and get the company finances in order long, long before funding a race team effort. 

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