Raising capital: two paths, one goal
At the center of the restructuring efforts are two parallel initiatives – one to strengthen equity, the other to raise urgently needed debt capital. KTM’s long-standing Indian partner Bajaj is currently in talks with the Canadian BRP Group (Bombardier Recreational Products, including Can-Am and Ski-Doo) to raise fresh capital of around 200 million euros (approx. 216 million US dollars) for the company. This equity could significantly stabilize the company’s financial base.
At the same time, intensive negotiations are underway with several international financial investors regarding the provision of debt capital. According to consistent media reports, these include major US funds such as Blackrock, Fortress, King Street and Oak Hill. Within the company, it is emphasized that the overall package is crucial – both in terms of financial feasibility and strategic fit.
Optimism despite the crisis: voices from within the company
Company spokesman Hans Lang expressed cautious optimism to the “Oberösterreichische Nachrichten” newspaper: “We are negotiating with a small but interested group of investors. We are confident that we will be able to announce a successful outcome in the next two weeks.” Lang also referred to the important role of strategic partner Bajaj, which continues to show confidence in the brand and its future.
The works council is also confident. Friedrich Baumgartner, Chairman of the KTM Works Council, emphasized: “We are receiving positive signals from restructuring manager Peter Vogl.” In addition, an internal agreement on short-time working was recently concluded in order to keep the approximately 3,000 employees in the company. Baumgartner interprets this as a clear sign that the business will continue: “The company wouldn’t do that if it wasn’t going to continue.”
Personnel structure in transition: Lukas Lauda in conversation
Parallel to the financial realignment, work is also being carried out on the future management structure. As the portal SPEEDWEEK.com reports, Lukas Lauda, son of Formula 1 legend Niki Lauda, could join the company as assistant to current CEO Gottfried Neumeister after May 23. Lauda has already been spotted at several motorsport events, including the Motocross World Championship in Switzerland and the MotoGP in Jerez. He is also said to be familiar with the internal processes in Mattighofen.
Conclusion: Countdown with an open outcome
KTM is at a crossroads. The coming days will decide the future of one of Europe’s best-known motorcycle manufacturers. With May 23rd, a deadline is approaching that could decide whether the company survives or fails. However, despite all the challenges, there is cautious optimism among managers and employees alike – supported by strong partners, concrete negotiations and the will to restructure.
