P1racenews AI automatic summary:
MotoGP manufacturer KTM is set to receive financial backing from Bajaj Auto to help repay its debt, according to reports in India.
According to reports in India, KTM will receive financial backing from Bajaj Auto to address its debt crisis, which has surpassed €2 billion. KTM had to implement measures including staff layoffs and production pauses to cope with its financial issues last winter. The restructuring plan led by KTM was accepted by creditors in regional courts of Austria, ensuring 30% of debts will be repaid by May 23 this year, requiring €600 million. Bajaj has secured a loan of €566 million, guaranteed by JPMorgan Chase, DBS Bank, and Citigroup, for KTM. Bajaj’s majority ownership in KTM’s parent company could increase as a result of this financial deal. Bajaj Auto is in negotiations to potentially support KTM’s restructuring, while KTM is committed to continuing its MotoGP racing programs and developing an 850cc engine for series regulations in 2027.
