KTM Bankruptcy Avoided

KTM is one of the most important motorcycle brands in the world. The Austrian motorcycle company filed for insolvency protection in late 2024. The KTM parent company, Pierer Mobility, announced that a majority of the creditors have accepted their restructuring plan.

While many of the details are not yet clear, Whitebox Advisors LLC has reportedly been purchasing debt of KTM's creditors in order to improve the terms for creditors. According to ADV Rider:

Much of KTM’s debt had been purchased by the US-based Whitebox hedge fund, who was pressuring KTM to pay back more than the 30 percent.

PIERER Mobility: KTM’s Global Success and Financial Problems Explained

Discover how PIERER Mobility AG, the parent of KTM, Husqvarna, and GASGAS, became a motorcycle leader. Learn about its innovative brands, expansion into e-bikes, and the financial struggles behind its debt restructuring.

LexchartThe Lexchart Team

Here is an update to our Pierer Mobility company structure chart that shows how Whitebox and other creditors might fit into the KTM structure.

The diagram shows how Bajaj Auto Limited, Pierer Mobility AG, and Whitebox are contending for control of KTM to restructure its debt and continue operations.

Stay tuned as the story is not finished.