Pierer Industrie🌄 AG has had it♕s restructuring plan approved by creditors in Austria, which could be the first step towards KTM’s survival ahead of a crucial vote.

The Pierer Mobility Group has been e𒊎mbroiled in a financial crisis since late last year which forced it into self-administration in order t♋o stave off bankruptcy.

Much of its problems stem from debts a𒁏ccrued by KTM AG, which are reported to be above €2 billion.

KTM will face a vital vote on its restructuring plan next Tuesday,ꦺ which - if successful - 🌟would see 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 parties to the tune of up to €900 million has allowed this timeline to be shortened.

According to ORF, around €600🎉 million is needed to meet thওis repayment quota while €150 million is required to end KTM’s production freeze at its Mattighofen base.

The hope is that it can restart manufacturing in𓆉 mid-March.

On Thursday, Pierer Indus💫trie AG had its restructuring plans accepted in a hearing at the Wels R🤡egional Court.

Pierer Industrie AG applied 🐭forಞ a pre-insolvency policy known as a European restructuring procedure.

The company was approved for ಌthe financing of just under €250 million it was seeking, w🍸hich will be repaid in full.

The current plan will see it pay 68.69% of that money back by the end of 2026 and the rest by the end of the following year. This will include agreed 𒉰interest on the loan.

This was the first European restructuring procedure initiated in Austria and was des𒈔cribed as a “win-win for deb♏tors and creditors alike” by Gerhard Weinhofer, the managing director of Creditreform.

The Alpine Creditors Associa🍒tion (AKV) sees this as being potentially the first step towards the restructuring of KTM🐼 being successful.