KTM has reiterated that it is committed to competing in MotoGP despite pressure from creditors to withdraw to save cash.
The flagship brand of Pierer Mobility Group underlined its future in the championship is not under threat after an agency responsible for handling its debts issued comments to the contrary on Friday.
In a report after a first meeting between KTM and its creditors at the Regional Court of Ried im Innkreis, Alpenlandischer Kreditorenverband (AKV) stated that a withdrawal from MotoGP is ‘planned’ to cut costs. No timeline was provided about its alleged exit from the series.
"To reduce costs, the withdrawal of MotoGP/Moto3/Moto2 is planned," read the note.
However, in response to the report, KTM has issued a statement of its own, highlighting its unwavering support to MotoGP.
“Today marks an important day for KTM with the confirmation of our restructuring proceedings. This milestone secures our plan moving forward, and we are proud to confirm that motorsport remains an integral part of this restructuring plan,” it said.
“KTM stands firmly committed to motorsport. We repeat our statement for 2025: we will continue to race in MotoGP!
“We are re-energised with today’s positive outcome and thank you for your support.”
KTM's official position has nothing to do with the conclusions that AKV presented in an extensive memorandum with its main demands.
"AKV announces that the restructuring administrator, Judge Peter Vogl, has supported the continuation of the procedure as a restructuring procedure with self-management, following the first creditors' meeting today (Friday), as this does not currently represent a disadvantage for the creditors in the context of an overall consideration," it said.
KTM is looking for external funding after accruing debts totalling 2.9 billion euro amid flagging sales of its road-going bikes. Its MotoGP team halted the development of the RC16 earlier this month as its parent company continues to reel in from a major financial crisis.
The restructuring process that began on Friday is expected to help KTM emerge out of its current crisis and stand on a strong financial footing again.
According to the same report by AKV, a basic agreement with potential investors is set to be reached by mid-January and interested parties have already approached KTM and the restructuring administrator.
The forecast of 500 layoffs planned for the end of the year has been reduced to 300 people. At the same time, employees have been assured that the salaries not paid for November and December will be credited, in principle, during January.
The next hearing between creditors and KTM has been scheduled for 24 January.
KTM is poised to compete in MotoGP next year with its factory squad and the satellite Tech3 team. It also has a strong presence in Moto2 and Moto3.
Outside of circuit racing, KTM is entered for January’s Dakar Rally in January.
