The KTM insolvency saga is now starting to draw to a close, not with a bang, but with a bit of a whimper. After Bajaj saved the company from itself a couple of weeks ago, all of KTM's registered creditors worldwide had a finite amount of time to register any objections they may have had to the restructuring plan (and its Bajaj funding) as written.
Normally, the allowed time period for creditors to voice objections would be two weeks. However, given the international nature of the situation, its restructuring administrator allowed a slightly longer time, so that creditors from overseas would have time to respond if they wished.
As of June 17, 2025, Austria's Regional Court of Ried im Innkreis has legally confirmed that the proposed restructuring plans can now go through. Now it's up to KTM's restructuring administrators to pay the agreed-upon 30% of outstanding debts to the registered creditor list. According to the terms of the agreement, they must remit this payment over the next two weeks, by June 30, 2025.
If you look at Austrian regional and local news sites (not motorcycle-specific sites) and their reporting on this business drama as it's unfolded, you'll find plenty of people who are upset that it seems like Pierer is getting off easy as regards paying its debts. And, I mean, how would you like to be able to only pay 30% of what you owe someone, then wash your hands of it and go on with your life? To them, it feels as though it's another case of a business getting away with something, while regular folks are left holding the bag.
How will the business proceed going forward, with much greater Bajaj involvement at the helm? We can't say for certain at this point; it's far too early to tell. What we can do instead is say what we hope will happen, and how KTM can hopefully change for the better. And honestly, it's pretty simple.
1. Offer a wider range of small-displacement bikes in multiple markets
KTM is a brand known, loved, and respected for its enduro, adventure, and dual sport bikes, as well as its particular brand of angular, aggressive, futuristic styling (thank you, Kiska).
But the bikes just keep getting bigger, heavier, and more expensive. KTM, with more involvement from Bajaj, has an excellent chance to expand its small-displacement range to offer a little something for everyone, and at more price points, too. Not everyone necessarily wants, needs, or can afford a 1290, but they might want to bleed orange just the same.
2. Improve reliability and customer service
While KTM's insolvency woes stole most of the headlines (and for good reason), its ongoing camshaft woes—and perhaps more to the point, how long it dragged out the period in which it denied any issues existed, all while customer complaints and evidence stacked higher and higher—certainly didn't help the perception of the brand.
Obviously, a major way that Bajaj can help steer KTM into calmer waters would be the basics: Treat customers fairly, and address those manufacturing issues head-on. Own up to the problems, admit that something went wrong, and then work to make it right. Support customers who've stood by the brand loyally, but who are understandably upset about a thing that shouldn't normally be a problem, but now is.
In fact, I'd even go so far as to say that's a way that KTM can distinguish itself from so many other companies (not even motorcycle companies; companies in general) in the current era. In a time when planned obsolescence is a major bugbear for the many of us who keep our things for more than a few years, and don't just trade up to the newest version year after year, actually standing behind your products might almost seem like a novelty.
3. Ensure Steady Hands At The Helm
We weren't in the boardroom; we don't know the full details of what went on. And it seems like KTM and its insolvency administrators and various legal advisors have already made some headway on this one, switching out the CEO and board members while deep in the throes of the restructuring process.
That's a crucial move for the confidence of all involved. But a change of critical decision-making personnel is only the first part of the equation. What's far more important is how they address structural change to ensure that KTM can get back to making bikes that customers want, supporting those customers, paying its employees fair wages, paying its creditors (kind of important, particularly if you want to continue having access to good quality components in your bikes), and also being a business that makes money.
It's a fine line to walk, to be sure. But hopefully, with the right hands at the helm who are ready to roll up their sleeves and start wrenching on the oily bits inside the vast KTM business engine, the new team can do it. As we've said before at RideApart, no one wants to see it fail.
KTM is capable of great things, if it can just take this opportunity to do some course correction as appropriate.
What do you think should happen next at KTM, if you've been following the story for the past year or so? Let us know your thoughts in the comments.
