The funding, facilitated by major shareholder Bajaj Auto Ltd., comes as KTM faced a severe financial crisis that led to self-administration and a comprehensive restructuring process. The secured funds will cover 30% of the company's outstanding debts, estimated to be over €2 billion, with a critical payment deadline of May 23, 2025.
Regulatory filings indicate that Bajaj Auto's European arm secured a €566 million unsecured loan from global financial institutions, including JP Morgan Chase & Co., DBS Bank Ltd., and Citigroup Inc. These funds are earmarked for investment purposes, with KTM being the primary beneficiary.
Since initiating self-administration, KTM has undergone significant internal changes, including layoffs, a temporary suspension of motorcycle production, and the restructuring of its board of directors. The successful securing of these funds marks a pivotal step towards stabilizing the company's financial position and ensuring its continued presence in the global motorcycle market.
For Australian riders and dealers, KTM's strengthened financial footing is expected to translate into sustained product availability, continued innovation, and robust after-sales support, reinforcing the brand's commitment to the Australian market.
