Just when it looked like KTM was about to run out of trail, the embattled motorcycle maker once again dodged financial ruin, just days ahead of a make-or-break deadline in its court-ordered restructuring. The company needed €600 million in emergency funding to meet a court-mandated requirement to repay 30% of what it owes creditors who had filed more than €2 billion in claims. The payout is a key condition of KTM’s ongoing recovery plan — and for a while, it didn’t appear that loan would materialize. 

KTM hasn’t shared details about exactly where the funding is coming from, but it confirmed that “financing commitments” are in place and that the required application to deposit funds has already been submitted to the court-appointed administrator. A final ruling from Austrian insolvency authorities is expected in early June. 

The likely source of that last-minute cash infusion? Bajaj Auto. Ranked as the world’s sixth-largest motorcycle producer, Bajaj holds a 49.9% stake in Pierer Mobility, KTM’s parent company, giving it plenty of incentive to keep the Austrian brand afloat. That theory gained traction when news broke that Bajaj’s European subsidiary had secured a €566 million loan from JPMorgan Chase, Citigroup, and DBS Bank. Earlier this week, Bajaj acknowledged this development, further stating that they are “in negotiations and exploring various alternatives to participate in the restructuring of KTM AG.”

Neither company has confirmed the money was intended to save KTM, but the timing and near-exact amount are hard to ignore. If true, this development underscores the deepening ties between Bajaj Auto and KTM, with Bajaj’s continued financial support playing a crucial role in stabilizing the Austrian motorcycle manufacturer during what’s been a turbulent restructuring process. A slight rise in Bajaj’s stock following news of the loan suggests investors view the likely bailout as a smart strategic move.  

Bajaj’s relationship with KTM goes back to 2007, when it first bought a minority stake in the Austrian brand. Over the years, the partnership has yielded a series of small-displacement models — including the 390 Adventure family, which is manufactured at Bajaj’s Chakan facility in India. Bajaj has also played a supporting role in previous KTM expansions, and the two brands jointly explored electric vehicle development before KTM’s financial challenges put such projects on hold.

While this week’s funding may buy KTM some breathing room, it doesn’t resolve its broader issues. According to multiple reports, the company suffered a 30% revenue decline last year and continues to post operating losses. Parent company Pierer Mobility also recently confirmed KTM will exit the e-bike market entirely, a side hustle that contributed to the company’s financial plummet, as part of its cost-cutting strategy.

The crisis has continued to impact KTM’s operations, most recently as the company was forced to halt production at its Mattighofen facility, citing severe supply chain issues, which translated to a lack of trust from wary part suppliers. Production isn’t expected to resume until at least mid-August.

Whether this latest infusion marks a true turnaround for KTM or merely extends the drama remains unclear. The next steps hinge on an Austrian court’s ruling in early June, when it’s expected to decide whether KTM’s restructuring plan has met the required conditions. A green light would make the plan legally binding — and finally allow Team Orange to close the book on insolvency.

Author: Jamie Elvidge

Jamie has been a motorcycle journalist for more than 30 years, testing the entire range of bikes for the major print magazines and specializing in adventure-travel related stories. To date she’s written and supplied photography for articles describing what it’s like to ride in all 50 states and 43 foreign countries, receiving two Lowell Thomas Society of American Travel Writer’s Awards along the way. Her most-challenging adventure yet has been riding in the 2018 GS Trophy in Mongolia as Team AusAmerica’s embedded journalist.