Clifford Chance Advises PIERER Mobility on KTM Restructuring.
Clifford Chance has advised PIERER Mobility AG (PMAG) on KTM AG’s complex financial restructuring, helping steer the renowned motorcycle manufacturer into a new chapter.
In late November 2024, KTM AG filed for judicial restructuring with self-administration at the Regional Court of Ried, Austria.
By February 2025, the creditors approved a plan for KTM and two of its subsidiaries to repay 30% of their claims in cash, totaling roughly €525 million.
This lifeline was made possible thanks to Bajaj Auto International Holdings B.V., which provided a €450 million loan to KTM. On top of that, Bajaj contributed another €150 million to PMAG, which in turn ensured KTM’s subsidiaries could make the necessary payments.
The insolvency court is expected to confirm the plan this coming June.
PMAG was supported by Austrian firm Oberhammer Rechtsanwälte GmbH and Citigroup Global Markets Europe AG as financial advisor.
Clifford Chance’s lead team included Bettina Steinhauer, Stefan Sax, and Axel Wittmann, backed by a diverse team of partners, senior associates, and counsels from offices in Frankfurt, Luxembourg, Düsseldorf, Munich, New York, and Amsterdam.
PIERER Mobility AG CEO Gottfried Neumeister shared:
"I am grateful and happy today. KTM is back on track. Our employees have done everything over the last three months to ensure that the race can continue. We have closed an important chapter today. But a single chapter never tells the whole story.
"Now we can continue the great story of KTM. We do it for the millions of KTM fans worldwide, to whom we are grateful every day. For our racers, of whom we are damn proud. And for our Austrian location, to which we are deeply attached in our hearts. KTM remains one of the top employers in the Upper Austrian industry."
KTM AG is a leading European manufacturer of high-performance motorcycles, including KTM, Husqvarna Motorcycles, GASGAS, and WP Suspension. Headquartered in Mattighofen, Austria, the company employs over 4,000 people and generated more than €2.5 billion in revenue in 2023. It operates as a 100% subsidiary of PIERER Mobility AG, which focuses on premium brands in the mobility sector and is listed on the SIX Swiss Exchange and Vienna Stock Exchange. Renowned for its innovation and "Ready to Race" ethos, KTM continues to expand globally while maintaining its Austrian roots.
PIERER Mobility AG is an Austria-based company specializing in the development, production, and distribution of premium powered two-wheelers and electric vehicles. The company's portfolio includes renowned motorcycle brands such as KTM, Husqvarna Motorcycles, GASGAS, and MV Agusta, as well as high-performance components under the WP Suspension brand. Additionally, PIERER Mobility offers sports cars through its KTM X-BOW division and e-bicycles and bicycles under brands like Husqvarna E-Bicycles, FELT, and GASGAS Bicycles. Headquartered in Wels, Austria, the company operates globally, serving markets in Europe, North America, Mexico, and beyond.
Clifford Chance is a global law firm with over a century of history and a presence in 23 countries through 34 offices. A member of the prestigious Magic Circle, the firm is recognized for its deep expertise in banking, corporate law, finance, dispute resolution, and tax. It advises a broad spectrum of clients, including multinational corporations, financial institutions, governments, and not-for-profits by combining international best practices with local market insight. Known for its collaborative culture and forward-thinking approach, Clifford Chance delivers innovative, high-quality legal solutions across every major industry and sector.
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