KTM must pay at least 4 billion of its 19 billion kroner debt to survive bankruptcy. However, production will restart in mid-March.
The employees at KTM's Austrian factory can soon return to work.
This is what Speed Week writes.
And they will have plenty to do. The motorcycle brand must pay at least 4 billion Danish kroner to its creditors in just 14 days to avoid bankruptcy.
For a start, the crisis-stricken motorcycle brand is breathing life into just a few production lines. This is possible because an expanded circle of owners has poured 366 million kroner into the company.
In four months at the latest, KTM will have four more assembly lines up and running. This is despite the motorcycle brand having a quarter of a million motorcycles in stock. Read more about it here.
And these are the motorcycles that management must now sell off so that employees can replenish the inventory. However, the billion-dollar payment to creditors is only one of KTM's many challenges.
The Italian brand Agusta, which has been under the same group until now, will be sold back to its original owners as part of the rescue plan. This means that at least 500 of KTM's 4,500 employees will be out of work.
There has also been some doubt about the Husqvarna brand, which KTM owner PIERER Mobility AG manufactures under license from Sweden.
But according to Speed Week , it is now clear that KTM is letting the Swedish brand and the licensing agreement slip into the background to bring the focus back more unilaterally on KTM.
It is not clear from the agreement between the new management at KTM and the creditors whether the brand can return to the world of motorsport. The brand withdrew from the top of the world of motorcycle racing in early January. Read more about it here .
