(Bloomberg) — Creditors of Austrian motorcycle maker KTM AG have approved a restructuring plan that will write off 70% of what they’re owed. The company now has three months to secure about €800 million ($840 million) of cash to finance the turnaround.
Citigroup Inc. is leading the fundraising effort and KTM parent Pierer Mobility has reported interest from several potential investors last month.
Management has spent the last three months since KTM filed for insolvency trying to convince creditors that the company-led plan proposing a 30% payout, job cuts and a temporary production halt is a better option than bankruptcy.
The company built by entrepreneur Stefan Pierer filed for insolvency after struggling to navigate the volatile…
