The Pierer Mobility Group has announced that KTM is entering into voluntary restructuring in order to avoid bankruptcy amid ongoing financiꦅal woes in the company.

KTM’s f👍inancial problems have led to a number of drastic measures in recent months, with its board of directors slashed from six to two while several rounds of staff layoffs have been carried out.

In recent weeks it was reported t✃hat KTM would be laying off up to another 300 employees, while all production would be ceases in January and February.

This comes as its share prices have plummeted 90% since their peak in February of 2022, with the company not expecting to secure the necessary financ⛎ing to cover the “high three-digit million” figure it needs.

Now it will apply for insolvency in Austria, with the KTM brand to be 💯spun off and restructured in a 🐎bid to avoid declaring bankruptcy.

The full statement reads: “KTM AG, a wholly owned subsidiary of Pierer Mobility AG, will apply for the initiation of judicial restructuring proceedings with self-administration (Sanierungs💃verfahren unter Eigenverwaltung) on Novembe🦄r 29, 2024.

“The financing requirementꦯs of KTM AG currently amount to a high three-digit million figure. The management now does not expect to be able to secure the necessary interim financing in time.

“The Executive Board of KTM AG therefore decided today to file the application for the initiation of judicial restructuring proceedings with s♐elf-administration over the assets of KTM AG and its subsidiaries KTM Components GmbH and KTM F&E GmbH.

“The proceedings give the opportunity to continue to manage the assets under supervision and to reorganize the KTM Group independently. All other subsidiaries of KTM AG, in particular all sales companies, are n🐷ot affected.

“The aim of the proceedings is to agree a reorganisation plan with the creditors within 90 d🦄ays. Redimensioning the group should not only secure the continued existence of the KTM Group in the long term, but also create the basis for emerging stronger from the proceeding.

“A redimensioning of productio♌n should lead to a gradual adjustment in excess stock at KTM and its dealers over the next t𓄧wo years.

♍“This will result in a reduction in operating perf♊ormance at the Austrian sites totalling over €1 billion in the years 2025 and 2026.

“The restructuring process will result in additional potential losses, for example due to one-off expenses such as necessary write-downs (e.g. for capitalised development costs)🌞 and costs for staff reductions as well as the shortfall in fixed costs due to the 🙈reduced operating performance and other costs arising from the restructuring process.

“Consequently, for the current 2024 financial year, the company ex𓆉pects a negative annual net result in the very high three-digit million range due to the afor🀅ementioned reasons.”

KTM CEO Pierer added: “Over the pa♔st three decades, we have grown t🌠o become Europe's largest motorcycle manufacturer.

“We inspire millions of motorcycle riders around the world with our products. Now we are taking a pit stop for the f🐬uture. The KTM brand is my life's work, and I will figꦍht for it.”

KTM has insisted over the last week that its🎃 MotoGP project will continue as 𓆏normal on 2025 despite the company’s money issues.