Marco Bezzecchi
It is crunch time for KTM and their future in MotoGP. Creditors will vote on whether to approve their restructuring plan on February 25.
The company are reporting debts of around £2bn after entering self-administration in November last year. KTM’s future in the premier class – and in motorsport in general – is in serious doubt.
KTM have reiterated their commitment to racing and have even outlined plans to compete in 2026 and beyond. But the Austrian manufacturer must first have their restructuring plan approved by creditors.
KTM are offering creditors 30% of what they are owed as they look to keep their doors open. 2,000 employees have lost their jobs as a result of the financial woes.
Riders Pedro Acosta and Brad Binder have not spoken to the press about the situation. KTM issued a media blackout during testing in Buriram – it did not apply to satellite team Tech3.
KTM are confident their restructuring plan will succeed but they are facing a troubling battle with another party ahead of the deadline.
Whitebox’s proposed takeover of KTM offers ‘no guarantee’ the MotoGP project will ‘survive’
In a report from Motor Sport Magazine, KTM ‘should be able to’ start ‘extricating’ itself from its financial issues if their plan is approved.
However, KTM are facing a complicated issue. Whitebox – which holds some of KTM’s debt – is ‘trying to muscle its way into gaining control’ of the manufacturer with a plan of its own.
Whitebox are looking to entice creditors by proposing they receive 45% of what they are owed rather than KTM’s 30%. Their plan reportedly ‘has the backing of some other creditors.’
READ MORE: Everything to know about KTM from the MotoGP team’s riders to hierarchy
The deal could be good for the creditors, however, it is ‘certainly bad for KTM’s current owners.’ They would lose control of the company if Whitebox are successful.
Whitebox have accused KTM management of undermining its proposal last week. The US hedge fund is now rallying more creditors to approve their proposal – which many may see as a ‘vote of no-confidence’ in KTM management.
Regardless of what happens, there is ‘no guarantee that KTM’s MotoGP project will survive.’ This will be deeply concerning for riders Acosta, Binder, Maverick Vinales and Enea Bastianini who have been told the team’s future looks positive.
KTM are struggling on the track as well as off of it
KTM have said their financial problems should not impact the motorsport division. But after pre-season testing in Sepang and Buriram, concerns have been raised by the riders.
Acosta and Binder suffered a ‘horrific’ rear tyre issue in Buriram. The Michelin rubber looked ‘absolutely chewed’ when the RC16s came back to the pits.
Acosta could have a ‘rider safety issue’ with his bike due to the severity of the tyre’s wear. Tech3 riders Vinales and Bastianini have also encountered issues with the RC16.
The former, in particular, has struggled to adapt to the bike after joining from Ducati. Bastianini says KTM are ‘missing’ too much speed as pre-season testing left the manufacturer with more questions than answers.
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