Creditors approved a debt-restructuring plan proposed by KTM AG, in what can be seen as a lifeline to the Bajaj Auto Ltd.-backed Austrian bike maker.
KTM has to deposit a cash quota of 548 million euros, equivalent to 30% of creditors' claims, with the restructuring administrator by May 23, according to an ad-hoc news announcement on the company's website on Tuesday. The bankruptcy court will then confirm the restructuring plan in the beginning of June.
In the meanwhile, KTM will use the 50-million-euro loan extended by Bajaj Auto to resume production at Mattighofen, Austria. The planned full capacity utilisation of the four production lines in single-shift operation is to be achieved within three months.
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