Famous motorcycle brand in Colombia manages to emerge from bankruptcy after investment from shareholders

The renowned Austrian motorcycle brand KTM filed for bankruptcy in November 2024. According to a press report, it had accumulated debts of almost 2 billion euros.

Following this, KTM AG filed for restructuring in Europe on November 25, 2024. At a meeting with creditors, a plan presented by its parent company, Pierer Mobility AG, was approved, in which 70 percent of the debt will be forgiven.

As compensation, creditors will receive a one-off payment equal to 30 percent of what they are owed, for which KTM AG must deposit 548 million euros by May 23, 2025.

Now, it has been confirmed that on Tuesday, February 26, it managed to emerge from the financial crisis thanks to an investment of 50 million euros from the Indian company Bajaj Auto.

With the financial support of its shareholders, it will be able to restart production and continue operating. This is the case of the Mattighofen plant, which had stopped production since December 2024 and will be able to gradually resume operations from March 2025.

In addition, Pierer Industries AG announced that KTM AG will receive 50 million euros from its shareholders to finance this restart. Production is expected to be back to optimal levels within three months, operating four assembly lines in a single shift.

In an interview with the newspaper 'Expansión', Rakesh Bhatt, CEO of Bajaj Auto and member of the board of directors of KTM AG, confirmed that the 50 million euros have already been transferred to the restructuring administrator and that another 100 million euros are available in a bank in the Netherlands for future investments.

Although KTM is not among the top ten best-selling brands in Colombia, it remains one of the most sought-after by high-performance motorcycle enthusiasts, according to the newspaper 'Red+'.

Following the announcement of KTM's bankruptcy, concerns arose about possible impacts on the distribution of its motorcycles in Colombia.

However, the supply has remained stable and there have been no significant interruptions in its commercialization. Now, with the injection of capital it has received, the situation will improve.

DIGITAL REACH EDITORIAL