There's a classic scene in the movie The Naked Gun that reminds me of KTM's current predicament, and accurately sums up my feelings toward the Austrian manufacturer.
It shows the film's lead, Leslie Nielsen, right after chasing the film's bad guy and watching him careen into a fuel tanker. He's followed by an ICBM, then followed by a firework factory, and moves his way to the front of the crowd that had formed. And then, in a fit of perfect straight-man comedy, he tells them, "All right, nothing to see here. Please disperse. Nothing to see here!" as the entirety of what's going on behind him goes up in smoke, fireworks, and (of course) giant fireballs.
Why I thought of that scene when contemplating KTM's MotoGP future, I'm not sure. But let's consider the following.
Red Bull KTM's team principal Pit Beirer has previously come out and said that while KTM AG, which handles the customer-facing portion of the business is up a creek without a paddle, KTM Racing won't be affected by the current insolvency proceedings. Furthermore, KTM Racing also won't be affected by the layoffs, nor the employee furloughs, nor the consolidation of the business, i.e. MV Agusta being pushed by the wayside just 9 months after Pierer AG acquired a controlling stake.
