Honestly, I don't know how we got here. Perhaps when all is said and done, we'll dive into the who, what, why, and how of the whole KTM saga, but we're still deep in it at the time of writing. New information, new releases, and new news is coming at us like a firehose, though not like those presently in Los Angeles.
And all of the news is either confusing as hell—the brand's CEO and Co-CEO switching titles for some unknown reason—or painting a further picture of doom and gloom. The latter is the topic of today, as AKV Europe, the lawyers handling KTM's self-imposed insolvency proceedings, have filed new paperwork detailing just how much the company's creditors want. And, oh boy, are they doozies of numbers.
How's $2.5 billion sound? Worse yet, in AKV's statements about the proceedings, the group states this number is likely to grow as claims are still being filed, both by creditors and employees. Ouch.
According to AKV's latest statement, "So far, there have been 3,534 claims, namely 2,347 employee registrations and 1,187 insolvency creditors." Broken down into monetary value, employees want 12,718,555.48 euros ($13,377,462.38 USD), while KTM AG's creditors want 2,172,626,058.36 euros ($2,285,168,088.18). A further $200 million, give or take, is wanted from KTM Components GmbH and KTM Research & Development GmbH.
That, dear friends, is a lot of owed cheddar.
Worse yet, AKV states, " Numerous subsequent claims are to be expected. Thus, the notifications do not yet contain termination claims of the dismissed/resigned employees and, in addition, claims are still continuously submitted to the court, which are dealt with separately in another special examination day statute. It is therefore to be expected that the registered claims will increase in the proceedings." Emphasis AKV.
The whole situation paints a dire picture of KTM's continued existence, with the statement recognizing that production of the brand's motorcycles has halted due to a massive surplus on dealership lots, despite launching multiple new motorcycles in the last few months, layoffs have continued, contract work has been halted, three executive board contracts were killed, and sell-offs of real estate are proceeding. That all said, AKV states that the insolvency group has enough liquid funds to survive until August of this year, which would allow investors to form a group to save the company.
AKV states a total of 23 potentials have come forward.
However, further pitfalls remain. "Numerous audits initiated have not yet been completed with regard to the size of the procedures," states AKV, adding, "This concerns the assessment of the adequacy of a restructuring plan, the examination of the causes of insolvency and asset forfeitment as well as possible liabilities or challenges. In addition, an estimate of movable property was commissioned." What this means is that in the process of auditing KTM's books, things might be found out that further hamper KTM's survival, as well finding new investors into the company.
They do plan on offering a restructing plan on February 25th, though finding an investor by then "remains to be seen." Both Bajaj and CFMoto are, supposedly, the lead contenders at the moment.
What occurs from here on out is anyone's guess, but based on these reports from AKV, as well as emerging news from the company itself, it's going to be a bumpy 2025 for the brand. If it survives at all...
