Creditors pressure KTM to withdraw from MotoGP

KTM has reiterated that it remains committed to competing in MotoGP despite pressure from creditors to conserve cash.

Pierer Mobility Group’s flagship brand underlined that its future in the Championship is not in jeopardy after an agency responsible for handling its debts issued comments to the contrary on Friday.

In a report following the first meeting between KTM and its creditors at the regional court of Ried im Inkreis, Alpenländischer Creditorenverband (AKV) said the withdrawal from MotoGP has been ‘planned’ to cut costs. No timeline was provided regarding its reported exit from the series.

“To reduce costs, plans have been made to withdraw MotoGP/Moto3/Moto2,” the note reads.

However, in response to the report, KTM has released a statement of its own, highlighting its unwavering support to MotoGP.

“Today is an important day for KTM with the confirmation of our restructuring proceedings. “This milestone secures our plan going forward, and we are proud to confirm that motorsport remains an integral part of this restructuring plan,” it said.

“KTM is strongly committed to motorsport. We repeat our statement for 2025: we will continue to race in MotoGP!

“We are re-energized by today’s positive outcome and thank you for your support.”

KTM’s official position has nothing to do with the findings that AKV has presented in a comprehensive memorandum with its main demands.

“AKV has announced that the restructuring administrator, Judge Peter Vogel, has supported the continuation of the process as a self-managed restructuring process following the first creditors’ meeting today (Friday), as it is currently the case for creditors. Does not represent a loss in terms of overall consideration,” it said.

KTM is looking for external funding after taking on a total of 2.9 billion euros in debt amid declining sales of its road bikes. Its MotoGP team halted development of the RC16 earlier this month as its parent company faces a major financial crisis.

The restructuring process that started on Friday is expected to help KTM come out of the current crisis and stand on a strong financial footing again.

According to the same report from AKV, a basic agreement with potential investors is set to be reached by mid-January and interested parties have already contacted KTM and the restructuring administrator.

The forecast for layoffs of 500 people planned for the end of the year has been reduced to 300 people. Also, employees have been assured that unpaid salaries for November and December will, in theory, be credited during January.

The next hearing between the creditors and KTM has been scheduled for January 24.

KTM is set to compete in MotoGP next year with its factory team and satellite Tech3 team. It also has a strong presence in Moto2 and Moto3.

Outside of circuit racing, KTM has been entered for the January Dakar Rally.