Bajaj’s European Subsidiary has secured a loan of EUR 566 million (Rs 5,445 crore) for a period of one-year to aid KTM’s plan of restructuring.
- Bajaj backs KTM during financial woes
- KTM AG has agreed to restructuring deal that involves paying 30 percent of its entire debt
- EUR 566 million to be deposited before May 23, 2025
Bajaj secures a Rs 5,445 crore loan for KTM
KTM has a deadline of May 23 to deposit the funds
This unsecured loan has been sourced by the European unit of Bajaj Auto from financial institutions including JP Morgan Chase Co, DBS Bank ltd and Citigroup inc, according to a regulatory filing. However, the filing states that Bajaj Auto intends to use the funds for their investment purposes and does not state KTM.
With this loan secured by Bajaj, KTM will be able to pay back its creditors and it gains a year’s time to work on an effective restructure. KTM filed for insolvency last year and arrived at a restructuring deal in February to return 30 percent of its total debt to creditors.
KTM was given a short three month deadline in February to to deposit EUR 544 million (30 percent of the total debt) with the insolvency administrator by May 23, 2025.
Early last month, KTM resumed production at its Mattighofen plant in Austria. However, after producing just 4,200 motorcycles,reports stated that the brand once again ceased production, effective April 28. This was due to supply chain disruptions resulting in a shortage of essential components needed to continue manufacturing.
All EUR to INR conversions based on current exchange rates.
Source: Bloomberg.com
Also see:
KTM future analysed based on latest financial update
