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Bajaj Auto Ltd secures loan for KTM AG

Bajaj Auto Ltd, co-owner of KTM AG along with Stefan Pierer, has secured a one-year, $632 million loan to keep the company operating, according to Bloomberg via Pierer Mobility AG, parent company of KTM, also produces motorcycles under the brands Husqvarna and Gas Gas. The financing comes from JP Morgan Chase & Co., DBS Bank Ltd., and Citigroup Inc., with proceeds likely intended for the company's motorcycle business efforts to resume manufacturing and stabilize operations. The infusion comes less than a week before a May 23 deadline for the company to deposit $600 million as part of a restructuring agreement to pay back 30 percent of its debt. KTM announced its need for the restructuring deal late in 2024, citing a downturn in the market after aggressive growth surrounding the surge of the outdoor recreational market during the COVID-19 pandemic. Together, Bajaj Auto and Pierer jointly control Pierer Mobility, the parent company of KTM. Bajaj's involvement with KTM AG dates to 2007. Pierer purchased KTM from bankruptcy in the early 1990s. So far, KTM's American racing efforts have been unaffected by the financial instability, with Chase Sexton finishing second in the Monster Energy Supercross, Tom Vialle winning the 250 SX East division, and some riders signed through the 2026 season. More SuperMotocross News Alexander Fedortsov to turn pro in MX opener Levi Kitchen renews with Pro Circuit Malcolm Stewart launches fishing apparel line Dylan Ferrandis to miss start of Pro MX Salt Lake City 450 SX results | 250 results Sexton wins 7th race, Webb third title Haiden Deegan wins final 250 E/W Showdown 450 SX Salt Lake City heats | 250 heats Chase Sexton sweeps SLC SX Qualification Cole Davies crashes in SLC SX Q1