The Client
KTM is an internationally active motorcycle manufacturer specializing in sporty and off‑road capable vehicles. The company develops, produces, and distributes motorcycles as well as components and accessories for both the off-road and street segments. With brands such as KTM, Husqvarna, and GASGAS, the group has a global presence and holds a worldwide market share of over 50% in the off-road segment. With revenues exceeding €2.6 billion in 2024 and around 6,000 employees, KTM is one of Europe’s leading motorcycle manufacturers. The brand is represented in over 100 countries through a global sales and service network.
In December 2024, KTM AG and two of its largest subsidiaries were required to file for reorganization proceedings, during which Mag. Peter Vogl from the law firm Puttinger Vogl in Ried was appointed insolvency administrator.
The Project
During the Covid‑19 pandemic, KTM recorded strong sales growth, which led to long‑term increases in production capacity. As the economy subsequently weakened, production continued at full scale despite declining end‑customer demand, resulting in a significant inventory build‑up at the dealer level. Consequently, strong wholesale sell-in was met with weak retail sales (end‑customer demand). The financial situation was further strained by two strategically challenging projects: the acquisition of high‑end motorcycle brand MV Agusta and the company’s entry into the bicycle sector.
These developments led to an increase in net financial debt from €250 million to €1.6 billion within two years. As a result, the group entered a liquidity crisis with a fresh‑money requirement of €650 million, which could not be secured through out‑of‑court measures. At the end of November 2024, reorganization proceedings with self-administration were initiated. These were successfully concluded by the end of May 2025. The 30% creditor settlement offered under the reorganization plan was made possible through an indirect shareholder contribution in the form of a new investor. The refinancing was based on comprehensive, planned restructuring measures.
Our interdisciplinary team was responsible for the following areas during the restructuring:
- Assessment of the appropriateness of the reorganization plan quota
- Validation of the going‑concern financial plan
- Analysis of the causes of losses
- Investigation of economic circumstances related to potential liability and clawback claims
- Support in strategic divestments (including MV Agusta and X‑Bow)
- Assistance with bank negotiations
Highlights:
- Advisory support to KTM and the insolvency administrator on all economic aspects of the restructuring
- Complex corporate structure and cascading liquidation/value‑breakdown analysis of more than fifty entities
- Multi‑stakeholder management: banks, shareholders, creditor representatives, insolvency administrator
- High public visibility
- Successful completion of reorganization proceedings and continuation of business operations