Pierer Industrie AG has had its restructuring plan approved by creditors in Austria, which could be the first step🍎 towards KTM’s survival ahead of a crucial vote.

The Pierer Mobility Group has been embroiled in a finan🌠cial crisis since l𓄧ate last year which forced it into self-administration in order to stave off bankruptcy.

Much of its problems stem from debts accrued by🦂 KTM AG, which are🔴 reported to be above €2 billion.

KTM will face a vital vote on its restructuring plan next Tuesday, which - if successful - would see it pay back🐟 30% of its total debts to creditors by the end of May.

Originally, the timeline for this was set for within two years. Howeveﷺr, investment from over 20 parties to the tune of up to €900 million has allowed this timeline to be shortened.

According t🧔o ORF, around €600 million is needed to meet this repayment quota while €150 million is required to end KTM’s production freeze at its Mattighofen base.

The hope is that it can r🅰estart manufacturing in mid-March.

On Thursday, Piere༺r Industrie AG had its restructuring plans accept✨ed in a hearing at the Wels Regional Court.

Pierer Industrie AG applied for a pre-insolvency policy known as a European restructurin✱g procedure.

The company was approved for the financing of just under €250 million it♉ was seeking, which will be repaid in full.

The current plan will see it pay 68.69% of that mon🌠ey back by the end of 2026 and the rest by the end of the folꦿlowing year. This will include agreed interest on the loan.

This was the first E𝕴uropean restructuring procedure initiated in Austria and was described as a “win-win for debtors 📖and creditors alike” by Gerhard Weinhofer, the managing director of Creditreform.

The Alpine Creditors Association (AKV) se🧸es this as being potentialꦓly the first step towards the restructuring of KTM being successful.