There has been a crucial court victory for Pierer Industrie AG ahead of a crucial KTM vote.

The restructuring plan proposed by Pierer Industrie AG has been approved by creditors in Austria. This plan being accepted could be a crucial step towards KTM's survival ahead of a crucial vote.

The Pierer Mobility Group had to enter self-administration last year in the midst of a financial crisis in an effort to avoid bankruptcy. It has been reported that the majority of the crisis has been caused by KTM AG who have debts which are reportedly above €2 billion.

On Thursday, Pierer Industrie AG had its restructuring plans accepted in a hearing at the Wels Regional Court.

Pierer Industrie AG applied for a pre-insolvency policy which is also known as a European restructuring procedure.

The company had the financing of just under €250 million approved, which will be repaid in full. The current plan will see them pay 68.69% of the money back by the end of 2026 and the rest by the end of the following year.

This restructuring procedure was described as a “win-win for debtors and creditors alike” by Gerhard Weinhofer, the managing director of Creditreform.

KTM has to face a vote on its restructuring plan next Tuesday, which would see it pay back 30% of its debt to creditors by the end of May. The original timeline saw them paying back the 30% after two years.

However, the recent investment that the Pierer Mobility Group has received saw them raise €900 million which has shortened their timeline.

According to ORF, €600 million will be needed to match the repayment quota and €150 million is required to end KTM’s production freeze.