Another move in the most recent history of the Mattighofen factory. KTM AG has secured a refinancing loan worth €550 million to pay off its existing debt with Bajaj Auto International Holdings B.V.. The operation, confirmed by Bajaj Mobility AGrepresents a new advance in the complex restructuring process that the Austrian manufacturer has faced during the last year and a half.
To understand the scope we must remember the most recent context. KTM entered into a “self-administration” process, carried out a major workforce adjustment with hundreds of layoffs and even stopped production on 2 separate occasions.
During this critical period, the company was sustained thanks to the support of its creditors and a capital injection from the Indian group Bajajwhich currently controls the Austrian manufacturer.
In fact, the former owner of the brand, Pierer Mobility AGwas renamed Bajaj Mobility AG as part of the acquisition operation by the Indian group, evidencing the structural change in the shareholding and corporate strategy.
What happens now with KTM?
The new refinancing agreement has been granted by an international banking consortium. This is an unsecured loan, with a term of 5 years and a total volume of 550 million euros. According to what was communicated, the interest rate is between 10% and 15%, and during the term of the contract KTM AG will be subject to the usual market restrictions regarding the distribution of dividends.
It is worth remembering that, as part of the restructuring plan approved last year, Bajaj Auto International Holdings B.V. had already granted KTM AG a loan of 450 million euros in May 2025 to finance the installment corresponding to the sanitation plan. With the signing of the new contract, the company considers the main refinancing measures planned in this phase to be completed.
Fortunately, in parallel with financial stabilization, industrial activity has been regaining its rhythm. Motorcycle production resumed last summer and, recently, the brand has begun to project its sports and product strategy again.
Good proof of this is the arrival of the new KTM 990 RC R Tracka version oriented exclusively to the circuit that will serve as the basis for the recently announced KTM 990 RC R Cupsharing the spotlight with the 990 RC R approved for road.
In short, beyond the figures, this agreement represents a decisive step to consolidate the medium-term viability of KTM. After months of uncertainty, the orange brand seems to be heading towards a stage of greater stability, both financially and industrially. Thank goodness.
