Bajaj Auto Ltd. has extended a €50 million loan to KTM AG amid a debt restructuring process that's set to end today.
On Feb. 21, Bajaj Auto invested €150 million in Bajaj Auto International Holdings BV, which holds a 49.9% stake in KTM by way of a complicated holding structure. Now, of this, €50 million is being extended to the Duke maker, according to an exchange filing late evening on Monday.
"Bajaj Auto International Holdings BV has provided a loan of €50 million (equivalent to Rs 455.56 crore) to Pierer Bajaj AG to facilitate the funding needs of KTM AG as part of its ongoing restructuring process."
The loan will be used to finance the operating costs of KTM and prepare the phased resumption of the production of KTM. This transaction is being executed within the framework defined by the bankruptcy administrator in Austria.
"In the event that the conditions are not fulfilled, the said loan shall be immediately repaid back to BAIH BV," the exchange filing stated.
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