Bajaj raised a Rs 5,431 crore loan ($632 million) to save KTM. A few weeks ago, most of KTM's debt was written off, but the company still faced difficulties to settle the dues.
The Austrian bikemaker has been in the middle of a financial crisis, and after a victorious court hearing that helped pay off most of its debts, the brand still faced difficulties settling its creditors' dues.
Bajaj Auto International Holdings raised a 1-year unsecured loan sourced from DBS Bank, JP Morgan Chase and Citigroup Global Markets.
The funds will reportedly help the Austrian brand manage liquidity, sustain product development and improve its production and supply chain.
KTM filed for Bankruptcy in 2024 after the acquisition of MV Agusta and investing a substantial amount into MotoGP. The financial problems were further elevated by the decline in 2-wheeler sales in Europe.
To face the financial crisis, The brand cut costs on some of its motorsport divisions, including the Dakar Rally, racing with the KTM brand alone, leaving Gas Gas and Husqvarna out this season.
This move ensures KTM's operations continue without any Hiccups. Furthermore, it also strengthens Bajaj's strategic position globally, especially as both brands co-develop and launch new motorcycles.
Following the loan, Bajaj's shares saw a 1.91% increase, trading at Rs 8,487.15. Bajaj and KTM both have yet to give an official statement.
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