Bajaj Secures Rs. 5445 Crore Loan To Support KTM With Restructuring Process
Bajaj’s European arm secured a loan of Rs. 5445 crore for a restructuring process. Bajaj Auto International Holdings BV, Netherlands, is currently in negotiations to explore the restructuring of KTM AG. Currently, the restructuring process will take place after arrangements are finalised, and necessary disclosures will take place at the appropriate time.
Institutions like JP Morgan Chase Co., DBS Bank Ltd, and Citigroup Inc. provided an unsecured loan to the European unit of Bajaj Auto. A regulatory filing reported this information. Bajaj also stated that it would use these funds for investment purposes.
This loan can enable KTM to pay the amount owed to the creditors and get a year for corporate restructuring. In February 2025, KTM had a 3-month deadline to deposit EUR 544 million, 30% of the total debt, with the insolvency administrator by May 23, 2025.
KTM resumed the production of its bikes at the Mattighofen plant in Austria. However, the brand had to stop producing bikes from April 28. The manufacturing of just 4200 bikes occurred. Supply chain disruptions and a shortage of essential components caused this to happen.
