The future of KTM AG appears to be secured following reports that India’s leading shareholder Bajaj Auto has received large loans to help Austrian companies repay debt.
KTM has been forced to survive a major financial crisis since last winter, laying off staff, suspending production and restructuring its board.
The debt exceeded 2 billion euros.
Earlier this year, KTM won a massive battle in Austrian district courts when the restructuring plan was accepted by creditors.
Under this plan, 30% of the claim will be repaid to the creditor by May 23rd of this year.
The KTM required to make this payment is around 600 million euros, and many companies have pledged interest in investing, but have pledged that they have not yet officially signed it.
Currently, a report from Indian media says Bajaj has received a loan of 566 million euros to allow KTM to repay its debt.
This loan is guaranteed by JPMorgan Chase, DBS Singapore and Citigroup.
This loan from Bajaj will also see the Indian company gain even greater impact within KTM.
Pierer Bajaj AG owns a majority of KTM’s parent company, Pierer Mobility AG.
At this stage, the future of KTM’s racing program remains unknown, and the brand has expanded the number of factory-supported riders in all areas this year in the wake of the financial crisis.
Once KTM entered self-control, it was mentioned that it was planned withdrawal from MotoGP in 2026.
However, KTM claimed there are no plans to stop racing at MotoGP, and in winter it confirmed that it is creating plans for the 850cc engine for the series’ 2027 rules reset.
