P1racenews AI automatic summary:
KTM’s future looks secured following latest report
Following reports in India that major shareholder Bajaj Auto is taking out a substantial loan to help with debt repayment, KTM AG’s future seems secure. The Austrian company has been facing a major financial crisis since last winter, resulting in layoffs, production halts, and board restructuring. With debts exceeding €2 billion, KTM’s restructuring plan was accepted earlier this year in Austrian regional courts. To repay 30% of its debts by May 23, KTM needed around €600 million. Bajaj’s €566 million loan, guaranteed by JPMorgan Chase, DBS Bank, and Citigroup, will aid in this debt repayment, potentially increasing Bajaj’s influence within KTM. Despite financial strains, KTM is committed to racing programs, including MotoGP, with plans for an 850cc engine for the series’ 2027 rules reset.