Black crisis for KTM: almost 3 billion in debt. But the MotoGP project continues

Bologna, 2 December 2024 – Serious crisis financial for KTM. IS' insolvency for the Austrian company that has submitted a reorganization plan to creditors and by February it will be clear whether it has been accepted or not. The insolvency plan was submitted on Friday to the court in Ried and concerns KTM AG and the two subsidiaries KTM Research e KTM Components, in addition to 3.623 employees at risk for their salaries and their jobs. We are talking about a debt consisting of almost 3 billion with approximately   Creditors 2500 waiting. In this difficult economic crisis, KTM Ag has a debt of over one billion euros and is exposed to Austrian banks, in addition to a debt with suppliers of just under 400 million euros. And the employees? They are waiting for their back wages (about 40 million in total). So the reorganization plan is underway, but in Austria there is amazement at the emergency that has been created around the motor giant: "We want clear answers from KTM on how we went from good earnings to a restructuring plan", the warning from the Minister of Economy Martin Kocher. In short, a disaster, but the MotoGP project goes forward.

Beirer: “We will remain in all series”

While employees suffer and tremble for their salaries, the company recently guaranteed that it will not touch its participation in the racing world, albeit with a reduction in some sectors, while in Moto GP will continue with the four bikes currently on the grid. The employees risk not seeing their salaries paid, but there is talk of a payment through the insolvency compensation fund, even if it will take months. In addition, production will stop in January and February and will continue with a cut in working hours. For now Pit Beirer confirms the presence of KTM in racing: “We will remain in all the series in which we are present”, the words of the motorsport manager. With Dorna KTM's contract expires in 2026 and the four bikes should remain in the running, Pedro Acosta and Brad Binder in the official team, Enea bastianini and Maverick Vinales in the satellite one, but the Gas Gas brand will disappear. However, there will be a reduction in the other sectors. In Moto 3 and Moto 2 no brand Husqvarna and the Intact team will not receive funding and Dakar only 3 riders will be present, writes motorsport.com. KTM could come to the rescue, however Red Bull, which has long been a sponsor of the bikes competing in the world championship. Mateschitz could contribute financially to help KTM survive and the relationship with Stefan Pierre, KTM's big boss, is very solid. According to the Salzburger Nachrichten there were also recent discussions between the two: Mateschitz probably wanted to know the situation in detail to concretely evaluate an intervention.

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