OK, instead of trying to do a full recap of what's going on at KTM, it's basically a mess. Plain and simple, the company is still facing a looming insolvency and needs to find 600 million Euros by the end of the month. But I wanted to get that out of the way, as a boardroom brawl is beginning to see the light of day, and the way that it's going down is far more confusing than anything we've witnessed before.
The fight is between Stefan Pierer and Stephan Zöchling, two members of the board for Pierer AG and KTM AG. Yes, they're both named Stefan/Stephan and pronounced exactly the same. But that isn't the confusing part.
Pierer AG owns KTM AG, which in turn is also partially owned by KTM Bajaj AG. Stefan Pierer—the guy—used to be the CEO of both Pierer AG and KTM AG until recently, when he sorta stepped aside because of all the things happening at KTM. There are rumors he was forced out of the position as part of the whole restructuring plan, but that's unconfirmed.
Stefan Pierer—again, the guy—however, remained on the board of both KTM AG and his namesake Pierer AG. Stephan Zöchling—the other Stefan/Stephan—is a member of the board of both companies, too, along with being the CEO of the aftermarket parts company Remus. And here's where it gets both juicy and even more confusing.
Apparently, Zöchling—the Remus guy—gave Pierer AG a bunch of money to help KTM AG's insolvency issues and for the company to live. But, because Pierer AG didn't tell Zöchling everything about KTM AG's work with KTM Bajaj AG, as well as Bajaj's increased stake, as well as how big of a financial hole it was in, he wants that money back.
And he wants it now.
According to Der Standard, "The starting point for this is a loan granted by Zöchlings Dabepo Holding AG to Pierer Gruppegesellschaft mbH (Piko). [Piko] is at the top of the Pierer Group and is owned by Stefan Pierer," the outlet states, adding, "This loan is now due, but has not been repaid, the Dabepo lawyers argue in a letter to the banks."
They go on to state, "Stefan Pierer asked Dabepo for help when the group became in a precarious situation in the fall of 2024 and a restructuring procedure was initiated via Pierer Industrie AG." That loan was for around 80 million euros, says the outlet. Pierer AG, accordingly, is said to have told Zöchling's Dabepo Holding AG that it would receive shares for its loan at the end. That loan, however, wasn't due until the end of June of this year. So why then is Zöchling arguing that it's due now?
Because, as he and his lawyers argue, Pierer AG wasn't upfront with him.
"Pierer is said to have refrained from informing the funder [Zöchling] about essential information such as that about pre-emption rights and put options from Bajaj and thus broke the contract," reports Der Standard, "Despite the due date, the money including interest had not been repaid, so it is said to be about the aforementioned 80 million euros."
Pierer AG—the company, not the dude—disputes these claims and is counter-suing Zöchling, stating, "No lender of the Pierer Gruppesgesellschaft mbH currently has a due claim and a right to use collateral granted to him by Pierer Gruppesgesellschaft mbH or to initiate such exploitation," a spokesperson told Der Standard, adding that the whole complaint by Zöchling was "inadmissible exploitation attempts."
How this all goes down is anyone's guess, as KTM's insolvency has been a hotbed for Telenovela twists and turns. Personally, after crafting my own It's Always Sunny conspiracy board and doing my best Charlie Day impression, I think this is Zöchling's way of ousting Stefan Pierer—the guy—out of KTM AG and his namesake Pierer AG once and for all. Much like what's going on at Harley-Davidson these days with its current and former board members, it all feels like a power play to get a few key players off the playing board (pardon the pun).
I have no proof, only red yarn and a lot of finger-pointing. But strap in, folks, KTM's saga ain't done yet.
