Great news for the sport of motorcycle racing, and obviously the company of KTM, a restructuring plan for the Austrian brand KTM has been accepted, paving the way for production to restart in the next few weeks.

The restructuring plan, which has now been accepted by creditors, KTM will receive a cash quota of 30 per cent of their claims, indicating a significant saving in their huge dept.

Under the plan, KTM will have to pay 30% of the debts, a total of €548 million, by May 23rd this year. The creditors agreed to have the remainder of the debt written off.

In addition, KTM have secured a €50 million in funding from Pierer Mobility shareholder Bajaj Auto to restart production within the next few weeks.

Though KTM were confident of their plan being restructured, there were still doubts over whether it would happen. A US-based hedge fund Whitebox had bought up KTM debt in the hope of pressuring the Austrian motorcycle manufacturer into repaying a larger share of the debt.

They were partially successful in that endeavor, Pierer Mobility agreeing to repay the 30% of the debt within a couple of months, instead of the two years allowed under Austrian insolvency law.