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Paywall bullshit.
KTM Co-Owner Bajaj Auto Signs €566m Loan Before Funding Deadline
KTM 1290 super adventure motorcycles sit on the assembly line inside the KTM-Sportmotorcycle AG motorcycle manufacturing facility in Mattighofen, Austria.
Photographer: Michaela Handrek-Rehle/Bloomberg
By Marton Eder
May 17, 2025 at 2:50 PM EDT
The co-owner of the KTM AG motorcycle maker has secured a €566 million ($632 million) one-year loan within days of a deadline to fund an insolvency plan at the troubled Austrian company.
The European unit of Bajaj Auto Ltd. agreed to the unsecured loan with JP Morgan Chase & Co., DBS Bank Ltd. and Citigroup Inc., according to a regulatory filing to the BSE. The funds will be used for Bajaj Auto’s investments, according to the filing which does not name KTM.
KTM’s creditors agreed in February to a 70% haircut as part of a restructuring deal. The company has until May 23 to deposit €544 million with its insolvency administrator and pay out a 30% quota to creditors.
Bajaj and Austrian entrepreneur Stefan Pierer co-own Swiss-listed Pierer Mobility, which is the parent of KTM. Citi has been advising the company on securing fresh funds, including additional cash required to resume manufacturing.
KTM filed for insolvency last year after struggling to navigate the volatile demand for its motorbikes during the Covid-19 pandemic, which led to excessive inventories. The company has been among the hardest hit amid financial difficulties in Austria’s industrial sector, suffering from rising energy and labor costs that risk thousands of jobs.
Representatives for KTM and Bajaj didn’t immediately respond to requests for comment outside regular business hours.
It means their creditors “agreed” to take only 30% of the debt owed to them and forgive the remaining 70%
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Doesn’t work on every website, but it does on most of them.
"One year loan"
Any smart folk who can explain that?
They borrowed $630m to pay their creditors a pittance of what they are owed as part of the bankruptcy plan. Has to be paid back over a one year period.
It is kicking the can down the road, big time.
But the company survives another day.
Thank you for the info, didn’t know something like this existed.
I am glad to see this.
It means that if KTM does not somehow turn things around on its own, they will be Bajaj owned in the future rather that chinese
Exactly what I thought and it begs to question, how are they going to pay a loan of $630m back after 1 yr?
Wouldn't that mean that creditors get all they're due under the restructuring process they signed and that now this debt would only be between the bank providing the loan and Bajaj?
I'd think the creditors get what they are due but I may be wrong.
Are you more concerned with who owns than who makes it? I'd be preferencing Chinese made over Indian...
Its like choosing between the plague or cholera
Over half of PMG motorcycles are already made in China or India.
Most other OEM have already shifted some of their production to China, India or Thailand (Honda best selling dirt bikes, smaller capacities, are made in China).
You refinance it.
No. The $600,000,000 Euro is the 30% of the 2,000,000,000 they actually owed. Essentially, KTM was unable to come up with the 30% on their own. If not for the loan, KTM would have defaulted on the agreed upon 30% repayment and likely would have been subject to liquidation. That is my understanding. I’m sure someone that has been with more technical knowledge can correct me if I’m off on this.
Correct, they don't have 30% of what they actually are responsible for paying back but somehow think in 365 days they will. Meanwhile all their suppliers are fucked over 70%. Can Eli Tomac read the news? Anyone think their suppliers didn't have contracts, assurances, and agreements to be paid as well?
Pit Row
I’ve been wondering about the logistical aspects of restarting production of the lines in Austria. Hopefully the parts they were unable to get recently will be available again, and the employees they need as well.
I’m hoping they can get things going again and become viable for the long term.
KTM's assets are valued at 316,872,061 euros. This figure was reported in a filing related to KTM's financial situation, which also included information about their debts and number of creditors
Their assets aren’t even half of what the bailout loan is.
They will have to do something to become more profitable, so it’s probable that they will have to cut corners
"The funds will be used for Bajaj Auto’s investments, according to the filing which does not name KTM."
How does this help the motorcycle side of things? If the funds are targeted to the auto investments to get the loan, but end up getting used for bailing out KTM motorcycles- isn't that a breach of the loan terms and likely to void the loan and creditors could demand immediate full payment as a remedy? Liquidation would seem to be inevitable at that point.
KTM sells a lot of street bikes….”autos”
I'm still surprised in the rider confidence at the pro level for the brand.
Bajaj Auto is the name of the company the loan has no stipulations for the loan or where it is to go...."The funds will be used for Bajaj Auto's investments" means that Bajaj can do whatever they want with the money...
I believe it said it was an "unsecured" loan, which means they can use it for Mirtl party supplies if they want. They just have 1 year to party and pay it back.
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Bajaj Auto is the name of the motorcycle company.
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