Struggling Austrian motorcycle manufacturer KTM’s debts could be as high as €3 billion according to fresh reports as the company enters self-administration💎.

KTM’s money 𒉰troubles ♏have dominated headlines for the last few months, with alarm bells raised in October when its board of directors was cut from six to two members.

Since then, KTM has been f💖orced lay-off hundreds of employees, while thousands of unsold bikes in showrooms is forcing it to temporarily cease production in January.

Last week, KTM announced that it wo🔯uld be entering self-administration to undergo a restructuring process in order to stave off bankruptcy.

Those proceedings began on Friday🐻, which has revealed the true extent of the financial woes facing the Pierer Mobility Group and KTM.

According to insolvency expert Co🦩rnelia Wesenauer, quoted by : “It was clear that the liﷺabilities of the KTM companies would reach a high level.

“Nevertheless, we are surprised that the liabilities are so high. After all, at first glance, we expect liabilities of €2.5 to €3 billion. That is now clear. This is♕ the largest insolvency procedure in Austria this year.”

Earlier this year KTM cited a change✅ in demands from key markets and the recession in Germany as reasons for its declining financial health.

According to GPOne, KTM generated a profit of €100m in 2023𒈔, showing just how rapid the situation has deteriorated. Since their peak in February 2022, KTM’s shares have decreased in value by 90%.

KTM is set to ensure December salaries are paid for its staff despite the uncertainty over their jobs. However, November salaries and Christmas bonuses wil🐷l need to be covered by the Insolvency Wage Fund.

Motorsport boss Pit🍬 Beirer recently stated 🐻that the MotoGP project for 2025 is continuing as planned.

KTM is currently set to field Pedro ♐Acosta and Brad Binder at its factory team in 2025, while the works-backed Tech3 squad will run Maverick Vinales and Enea Bastianini.

The financial issues at the company have forced a reduction in its motorsport presence, though, with brands like GASGAS and Husqvarna disappearing ꦚfrom the grand prix grid.