Debt

Debt financing

Bajaj Auto secures $632-M to restructure co-owned motorcycle maker KTM

Economic Times   Bajaj Auto  

Bajaj Auto has raised EUR 556 million (USD 632 million) through a one year loan for funding KTM AG's insolvency plan, as the company has to deposit EUR 544 million to creditors by 23 May.The European unit of Bajaj Auto Ltd. agreed to the unsecured loan with JP Morgan Chase & Co., DBS Bank Ltd. and Citigroup Inc. As part of the restructuring deal, the creditors have accepted a 70% haircut.Bajaj and Austrian entrepreneur Stefan Pierer co-own Swiss-listed Pierer Mobility, which is the parent of KTM. Citi has been advising the company on securing fresh funds, including additional cash required to resume manufacturing.