Is KTM on the Brink of Withdrawal from MotoGP?

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Yeah but that's the thing. At what point do you stop admiring him for his past deeds and face the reality that he has at best messed up, at worst, screwed a LOT of people over?

It's like Ron Dennis in F1. He single handedly brought Mclaren back to dominance in the 80's and 90's. But his mindset was outdated by the 2010's and his leadership ultimately cost Mclaren their works Mercedes partnership and most of their sponsors. A void they took the best part of 15 yrs to recover from.
 
#22 said:
Yeah but that's the thing. At what point do you stop admiring him for his past deeds and face the reality that he has at best messed up, at worst, screwed a LOT of people over?

It's like Ron Dennis in F1. He single handedly brought Mclaren back to dominance in the 80's and 90's. But his mindset was outdated by the 2010's and his leadership ultimately cost Mclaren their works Mercedes partnership and most of their sponsors. A void they took the best part of 15 yrs to recover from.
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Yeh Ron Dennis is a good comparative

While not knowing a lot about KTM, I get the impression that they didn't put world economics into their future sales equations. To give a simple example when interest rates go up people have less discretional spending so that new motorbike to ride on the weekend will have to wait so if you forecast less discretional spending then sales will fall
 
I've read that Australian motorcycle sales dropped by 1.8% in 2024 which was less than predicted. While I don't know who did the sales prediction its clear that the companies selling motorcycles in Australia knew they were going to sell less in 2024. Did KTM take into consideration what sales projections were for 2024?

BTW resumption of KTM's motorcycle manufacturing has been shifted back to March
 
JFM01 said:
Beirer sounds fairly positive here.
They never paused development of the 2025 bike and the administrators have realized racing helps them sell bikes.
With liberty coming in they hope to decrease the budget for the racing team thanks to investors buying shares in the team.
https://www.motorsport-magazin.com/...motogp-zukunft-investor-pit-beirer-insolvenz/
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Yeh it does sound like the administrators will keep MotoGP going. I still wonder if there will be budget cuts, such as in development and/or less support staff
 
I've heard that Germany is shedding 10,000 automative workers a month. That's going to make it difficult for out of work KTM employees to find a new employment
 
Exactly. Same happened in the UK in 2005 when Rover collapsed. Suddenly supply massively outweighed demand and a lot of people ended up retraining and taking jobs in completely different professions.
 
mikesbytes said:
Where does the money come from to 'pay back 30% of its total debts to creditors by the end of May'?
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"This money is expected to be provided by the owners, new investors and banks, and deposited with the insolvency administrator by mid-April. The amount is estimated to be around €600 million."

The issue for me now is any creditors owed money are only getting 30% back. Better than nothing of course, but it means their credit lines are effectively frozen because no one is going to front them anymore knowing they will likely get at most, 30%, therefore, their cash flow will be virtually nothing.
 
#22 said:
"This money is expected to be provided by the owners, new investors and banks, and deposited with the insolvency administrator by mid-April. The amount is estimated to be around €600 million."

The issue for me now is any creditors owed money are only getting 30% back. Better than nothing of course, but it means their credit lines are effectively frozen because no one is going to front them anymore knowing they will likely get at most, 30%, therefore, their cash flow will be virtually nothing.
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Which means that operational money is going to have to come with sales from the backlog of stock and or investors money. Perhaps the resumption of production will have to wait longer?
 
https://www.pierermobility.com/en/newsroom/eqsfeed/2944687?type=adhoc

PIERER Mobility AG: Restructuring plan of KTM AG accepted by creditorsPIERER Mobility AG: Restructuring plan of KTM AG accepted by creditors


PIERER Mobility AG / Key word(s): FinancingPIERER Mobility AG: Restructuring plan of KTM AG accepted by creditors


25-Feb-2025 / 13:48 CET/CESTDisclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS News - a service of EQS Group.The issuer is solely responsible for the content of this announcement.


Ad hoc notification pursuant to Article 17 of Regulation (EU) No 596/2014 (MAR)


Ad hoc announcement pursuant to Art. 53 LR


Wels, February 25, 2025


PIERER Mobility AG: Restructuring plan of KTM AG accepted by creditors

Cash quota of 30%, payable by May 23, 2025
Liquidity of EUR 50 million secured for the ramp-up of production in March 2025
Click to expand...


KTM AG, a wholly owned subsidiary of PIERER Mobility AG, applied for court restructuring proceedings with self-administration on November 29, 2024. The aim of the proceedings was to agree on a restructuring plan with the creditors within 90 days.


At today's restructuring plan meeting, the creditors accepted the restructuring plan submitted by KTM AG. This plan provides for creditors to receive a cash quota of 30% of their claims in the form of a one-off payment (cash quota). In order to fulfil the quota of 30%, KTM AG must deposit an amount of EUR 548 million with the restructuring administrator by May 23, 2025 at the latest. The court will then confirm the restructuring plan at the beginning of June 2025 and the restructuring proceedings of KTM AG will end once it becomes legally binding.


To enable production to be ramped up again gradually from mid-March 2025, KTM AG will be provided with financial resources totaling EUR 50 million from the extended circle of shareholders. With the approval of the reorganisation plan, this amount will now be transferred to KTM AG to cover the costs of the phased resumption of production in March 2025. The planned full capacity utilisation of the four production lines in single-shift operation is to be achieved within three months.
 

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