KTM AG’s future appears to be secured following reports in 🐭India that major shareholder Bajaj Auto is taking out a substantial loan to help the Austrian company’s debt repayment.

KTM has been navigating its way through a major financial crisis since last winter that forced it to layoff staff🌄, pause product💫ion and reshape its board of directors.

Its debts exceeded €2 billion.

Earlier this y﷽ear, KTM won a major battle in the regional courts of Austria when its restructuring plan was accepted by creditors.

The plan wil🌊l see 30% 🐼of debts repaid to creditors by 23 May of this year.

The amount KTM needed to make this payment was around €600 million, with numerous companies pledging an interest in investment but not yet signi🦹ng anything official.

A report from Indian media now states that Bajaj has taken out a loan of €566 million to allow KTM to pꦡay off its debts.

The loan has been guaranteed by JPMorgan Chase, DBS Bank of Singapore and Ci♈tigroup, which Bajaj Auto has confirmed.

This loan from Baja🧜j will also likely see the India♕n company gain even greater influence within KTM.

Pierer Bajaj AG owns a majority 74.9% of KTM’s𝔉 parent company Pierer Mobility AG.

Bajaj Auto has released a statement commenting on these reports, though hasn't confi🔜rmed that the moܫney it has raised is to be used on KTM's debts.

The full statement reads: "This  is  with  reference  to  various  media  reports  published  in  the  mainstream  media  on  18  /  19  May  2025  and  the  material  price  movement  on  19  May  2025  in  the  equity  shares  of  the  Company listed on BSE Ltd. and National Stock Exchange of India Ltd. The said reports relate to our offshore wholly owned subsidiary securing a Euro 566 million loan from offshore lenders and speculating that the same is for the purpose of funding the restructuring of KTM AG. 

"In this regard, we would like to clarify that our wholly owned subsidiary, Bajaj ꧃Auto International Holdings BV, Netherlands (“Bajaj Auto BV”), is in negotiations and exploring various alternatives to  participate  in  the  restructuring  of  KTM  AG,  pursuant  to  a  plan  approved  by  its  creditors. Involvement by  Bajaj  Auto  BV  in &nbౠsp;the  restructuring  as  well  as  arrangements  in  this  behalf  are  being  finalised  and  the  Company  will  make  necessary  disclosures  at  the  appropriate  time  in  accordance with Regulation 30 of the Listing Regulations."

The futureꦚ of KTM’s racing programmes remains unclear at this stage, with the brand scaling back its number of factory-supported riders across all disciplines this year in the wake of its financial crisis.

At the outset of KTM going into self-administration, a p🐻lanned withdrawal from MotoGP in 202✨6 was mentioned.

However, KTM insi✃sts that it has no plans to stop racing in MotoGP and in the winter confirmed it has been drawing up 🐟plans for an 850cc engine for the series’ 2027 rules reset.