The creditors of the ailing Austrian motorcycle manufacturer KTM have approved a reorganization plan that cancels 70 percent of the debts. In addition, production will resume with the help of new investments, it became known on Tuesday.
According to the plan, KTM will have to raise 548 million euros by 23 May to pay off its debts. A larger group of shareholders will give extra money to relaunch production, according to Pierer Mobility, the parent company of KTM. Who these new lenders are, has not been disclosed.
KTM is known for its motorcycles, especially the sporty models for off-road and motocross. The brand is also known for its innovative technology and success in motorsport competitions, such as the Dakar Rally. The group has struggled with rising debt and decreased demand in recent years.
Photo credit: KTM
