Posts
276
Joined
12/25/2011
Location
Niles, MI, USA
KTM Gets A Lifeline
Upgrade to enjoy this feature!
Vital MX fantasy is free to play, but Premium users receive great benefits. Premium benefits include:
- View and download rider stats
- Pick trends
- Create a private league
- And more!
Only $10 for all 2026 SX, MX, and SMX series.
https://www.vitalmx.com/forums/moto-related/ktm-file-bankruptcy-self-re…
Thanks, I know. I made this post for those who don't want to wade through 65 pages for the latest news on KTM's future.
I thought this was going to be about an anti-tuck device....
The Shop
Free shipping: VITALMX
DeCal Works Huge Plastic Inventory of UFO and Polisport kits.
Luxon 4-Post Bar Mounts
$189.95 - $239.95
As long as you have sales and service you won’t go out of business completely, restructure lop off some stuff sure! The airlines have proved that over and over
They seem to be still in deep shit. Where was the worry when they were 1B in debt rather than 3B? Hubris.....
It’s still crazy that, as a business regardless of who it is, the group that is owed gets the short end of the stick no matter what the outcome is in this situation. They’re out a boat load of money and they’re basically expected to just “be happy with what you’re getting”.
Didn’t realize how utterly fucked they truly are, not looking good if they don’t know how they’re gonna pay $500,000,000 by May of this year.
Just found out, there were no worries. Pierer was buying millions and millions of dollars' worth of real estate. The courts seem to be making him sell some of it for the proceeds. Sorry, this gentleman needs to go to jail.
I like that KTM is steering into it, owning the storyline that the whole motorcycling world knows right now. Way better than a brand / company trying to deny what's going on with the 'ol, "Look how great we are, nothing wrong here, we're #1, all sunshine and rainbows" type of BS. Great emotional connection, for those of us who get emotional about motorcycles, in this new campaign. Obviously, words won't mean a thing when the bottom line comes out later this year, but what else does a brand do, roll over and die because online trolls say so? Let's all build one another back up!
You know what's worse than KTM going bankrupt? BMW buying them and slapping their logo on the same 3 bikes but adding a 4th identical bike, silver in color, so its "theirs".
PMG/KTM finances are made public every year, externally audited every year, and have been under intense scrutiny and forensically audited by an Austrian business court since late November. There are no suggestions at all that he embezzled money or whatever. The court certainly did not ask him to sell some of his assets because of some nefarious reason as you seem to imply.
In fact the only investigation right now is to determine if he had been late to enter insolvency proceedings (on the other hand the banks think he did that too soon). He might incur some fine for that.
Pierer bought KTM in 1992. At that time there were 200 employees making 7000 bikes a year. He built that up to become the largest European motorcycle manufacturer, selling over 200 000 bikes a year. Of course he made big money along the way. Unfortunately success led to hubris and he ended up making some very bad business decisions leading the brand to the brink of bankruptcy. He rightfully lost his CEO position for that but for all his flaws there is nothing to suggest he embezzled money or anything like it.
https://www.rideapart.com/news/751803/ktm-restucturing-succeeds-insolvency/
KTM Won't Die After All, But No One Knows Who Saved It
A mysterious party has, in part, saved the brand.
But now, after all the turmoil, the billions of dollars in accrued debt, the mounting production pauses, and back and forth between creditors, banks, would-be investors, and more, there's an outcome. No, BMW isn't saving the struggling brand, as was the rumor only a few days ago. Nor was it Remus' CEO. Someone is, and in part, that someone is Bajaj. But, Bajaj isn't the only one. Weirdly, the main party involved in saving the company wishes to remain anonymous.
According to AKV, the Austria firm helping KTM through its restructuring process, the "Restructuring plan of KTM AG accepted by the creditors," reads the press release, and adds that said restructuring will involve paying off only 30% of its creditors claims, which is to be paid to the restructuring administrator by May 25th. That's about $630 million of the nearly $3 billion in debt liabilities it was on the hook for.
However, what's interesting about AKV's reporting of the situation is that though KTM's shareholders approved the restructuring plan, they didn't disclose the other investors outside of Bajaj. In fact, AKV stated, "The name of the financing investor is still unknown." So who are the other investors? That's still unclear.
Ya do have to wonder what a 70 percent loss of monies owed does for parts supplier motivation/quality control .
Maybe KTM could dissolve WP and instead use KYB for their OEM suspension . Kill 2 birds with 1 stone.
I believe in the other thread I read Pierer had sell 200 million euros worth of property, if not there in another report. You put a company KTM's size 3B in debt all the while accumulating at least 200 million worth (this is what he was forced to sell, not what he has left, or other compensation) of property that is not a good look. Especially if the company goes tits up and the community around it that depends on it is destroyed. Nobody is suggestion theft or embezzlement, I am suggestion irresponsibility, greed, and hubris though. Why did it take his creditors and suppliers getting 3/10ths of what they are owed to make him sell property? Why didn't he sell long before crisis?
Do this and put a carburetor back on the two strokes I'll be first in line to buy another one lol!
Pit Row
Don't know how much money he has made over 30+ years at the helm of KTM though I'm sure it was good. The reports are that he sold 200M of his real estate company to reinvest in KTM and pay Christmas bonuses belatedly. The court did not ask him to do that. At least we agree that CEOs do not tend to do that until they're in deep sh*t.
i like the marketing thing that they are doing. Has anyone joined the "Orange Blood" yet? It's good that they are leaning into it. my 2025 350SXF hopefully won't depreciate more so than a normal motocross bike.
Man I don't know, doing burnouts in front of the shuttered factory and proclaiming "stronger than ever" the day after a court approves your stiffing 2500 creditors out of 70% of their money is a bad look. They don't need to act like a whipped puppy, but I think I'd act a little more subdued and humbled.
It boggles my mind how these guys like Pierer seem to continuously fall upward. You do have to admit groveling and sweet talking your way into a restructure plan that lets you get away with essentially stealing a couple billion dollars from the banks is damn impressive.
Coming from a guy that has three Husqvarnas and a KTM in his garage I'm going to have a hard time buying another PMG product anytime soon. I'm getting tired of these rich people\companies getting treated differently than everyone else, if I told my mortgage company I'm only going to pay 30% of my mortgage but I'm going to keep my house and they just have to be happy with it I'd be laughed at and dragged in to court immediately. Until we vote with our wallets against companies that pull these shinnagans nothing is going to change about all this "too big to fail" bs.
We definitely need a new thread on this topic every week for sure.
Amen brother. 45 years of making God Damn certain I pay the help and suppliers before I get a red cent to see elitists like Pierer get away with shit like this, fuck them and the people like them.
If your owed that money, how do you not increase your prices going forward 70%?
Because the courts will bail you out. Too big to fail.
Reread. He's talking about the suppliers that KTM stiffed.
And where is your incentive to keep dealing with a company that has done this to you and could potentially do so in the future ?
As I’m sure a lot of us do I know quite a few guys in various positions at KTM and my understanding is they purchase everything from outside vendors .
Bankruptcy is not unique to the elite, plenty of "mom and pops" and individuals elect to go that route as well.
Post a reply to: KTM Gets A Lifeline