KTM AG Completes Financial Restructuring with €500 Million Loan

KTM AG has successfully completed its financial restructuring by securing a refinancing loan of €500 million from an international banking consortium. This significant move is aimed at refinancing a previous €450 million loan provided by Bajaj Auto International Holdings B.V. in May 2025, which was instrumental in supporting KTM’s restructuring efforts.

Details of the Refinancing Agreement

The refinancing loan, which is unsecured, features a five-year term and carries interest rates in the low to mid-single-digit percentage range. As part of the agreement, KTM AG will adhere to market-standard restrictions on dividend distributions throughout the loan period. This restructuring follows a challenging year for the Austrian motorcycle manufacturer, which faced severe financial difficulties that led to the filing for insolvency.

In February 2025, KTM AG’s restructuring plan received approval, mandating that the company pay 30 percent of its total debt to approximately 2,500 creditors. This debt amounted to €548 million and had to be settled by May 23, 2025. The intervention by Bajaj Auto was crucial in rescuing the company from insolvency, as they provided the initial €450 million loan in May 2025.

Impact of Bajaj Auto’s Involvement

Bajaj Auto’s support marked a significant shift in its relationship with KTM, transforming from a minority investor to taking a controlling stake in the company. This acquisition led to the Pierer Group’s exit from KTM, with Bajaj now holding a 74.9 percent stake in what was formerly known as Pierer Mobility AG and KTM AG.

The takeover initiated a major corporate reorganization, resulting in the renaming of Pierer Mobility to Bajaj Mobility AG. This new entity serves as the holding company for KTM, Husqvarna, and GasGas brands. The restructuring and subsequent changes are expected to position KTM more favorably in the competitive motorcycle market.

The completion of this refinancing loan signifies a critical step for KTM AG as it navigates a new financial landscape and aims for stability and growth in the coming years.