Pierer Industrie AG has had its restructuring plan approved by creditors in Austria, which could be the first step to😼wards KTM’s survival ahead of a crucial vote.

The Pierer Mobility Group has been embroiled in a f💙inancial crisis since late last year which forced it into self-administration in order to stave off bankruptcy.

Mജuch of its problems stem from debts accrued by KTM AG, which are repo🎶rted to be above €2 billion.

KTM will face a vital vote on its restructuring plan next Tuesday, whic🃏h - if successful - would 𒉰see it pay back 30% of its total debts to creditors by the end of May.

Originally, the timeline for this was set for within two years. However, investment from over 20 parti🅰es to the tune of up to €900 million has allowed this timeline to be shortened.

According to ℱORF, around €600 million is needed to meet this repayment quota while €150 million is required to end KTM’s prod⛦uction freeze at its Mattighofen base.

The hope is that it can restart ma🔯nufacturing in mid-March.

On Thursday, Pierer Industrie AG had its rest🧸ructuring plans accepted in a hearing at th🃏e Wels Regional Court.

P𓃲ierer Industrie AG applied for a pre-insolvency policy known as a European restructur🃏ing procedure.

The company was approved for the financing of just under €250 millio๊n it was seeking, which will be repaid in full.

ཧThe current plan will see it pay 68.6🍨9% of that money back by the end of 2026 and the rest by the end of the following year. This will include agreed interest on the loan.

This was the first European restructuring procedure initiated in Austria and was described as a “win-win for debtors and creditors alike” by Gerhard Weinhofer, the managing director of Credit🅺reform.

The Alpine Creditors Association (AKV) sees thi✅s as being potentially the first step towards the restru✨cturing of KTM being successful.