Bajaj Auto Ltd. has extended its 50 million euro loan to KTM Ag as it is expected to close today in its debt restructuring process.
On February 21, Bajaj Auto invested 150 million euros in Bajaj Auto International Holdings BV. It holds a 49.9% stake in KTM due to its complex holding structure. Now, of this, 50 million euros have been expanded to Duke Makers, according to an exchange filed late on Monday evening.
“Bajaj Auto International Holdings BV has provided Pierer Bajaj AG with a loan of 50 million euros (equivalent to Rs 455.56) to promote the funding needs of KTM AG as part of the ongoing restructuring process.”
The loan will be used to fund KTM operating costs and prepare for a gradual reopening of KTM production. This transaction is carried out within a framework defined by Austrian bankruptcy managers.
“If the conditions are not met, the loan shall be repaid to Baih BV immediately,” the exchange’s filing said.
