India, June 18 -- KTM has finally been cleared by the courts to proceed with its restructuring proposals, a major move toward the company's recovery after several months of doubt. A local court in Ried im Innkreis formally approved the restructuring proposals for KTM AG, KTM Components GmbH, and KTM Forschungs & Entwicklungs GmbH, after a required two-week period for appeal had elapsed. This is a welcome development amid indications by Indian two-wheeler behemoth Bajaj Auto of its interest in acquiring the company, although an official announcement is yet to be made. This opens the way for KTM to stabilise its operations under new management while fixing its financial woes.

KTM's reorganisation was prompted by increasing production expen...