KTM Restart with 50-Million-Euro Financial Boost

The 50-million-euro financial injection is intended to enable the resumption of KTM production and secure operations until the completion of the ongoing investor process. It is currently unclear who will join as a potential investor, as well as whether it will be a strategic or financial investor.

Further Rumors About Investor at KTM

Both KTM and restructuring administrator Peter Vogl have so far not disclosed any names, citing confidential negotiations. Rumors include BMW, as well as Stephan Zöchling, co-owner of the exhaust manufacturer Remus and new chairman of the supervisory board of KTM's parent company Pierer Mobility. Just this much: there is "great interest" and all interested parties still remaining in the process led by Citibank are interested in maintaining the location, assured KTM CEO Gottfried Neumeister.

KTM Needs External Capital Initially

Nevertheless, whoever gets the nod will still have to wait for antitrust approvals. "It will therefore have to be structured in such a way that external capital is provided first until the approval is there, so that one can really enter the company as a shareholder," outlined Neumeister. Because the 50 million euros from Bajaj can keep KTM afloat until the end of March, but then another 100 million euros are needed to ensure continuation for April and May, and around 600 million euros to pay out the 30 percent cash quota to creditors as planned by May 23.

Light Installations to Celebrate KTM's Rescue

The planned full utilization of the four production lines in single-shift operation is to be achieved within three months. At KTM in Mattighofen, the first step towards rescue was celebrated on Tuesday evening with light installations, which were also the start of a new campaign ("Orange Blood"). On an online portal, owners and riders of KTM machines worldwide are to be able to connect.

Indian KTM Partner is World Leader in Three-Wheelers

Indian Bajaj Auto is one of the world's largest motorcycle producers and holds nearly 50 percent of KTM. According to its own information, it is India's number 1 motorcycle exporter and has sold over 18 million bikes in more than 70 countries. In three-wheelers, it claims to be the world market leader. The parent company Bajaj Group claims to be the third-largest company in the world's most populous country with a market capitalization of 167 billion dollars. The company was founded by Jamnalal Bajaj, and the cooperation with the Upper Austrians began in 2007 with a 14.5 percent stake.

(APA/Red)

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