Creditors of Austrian motorbike maker KTM AG approved a restructuring plan that will write off 70% of the company’s debt and resume production with the help of new investments.

KTM will need to secure INR 548 million (USD 575 million) of funding by May 23 to pay creditors, according to the plan that was approved on Tuesday by a majority of creditors. An extended circle of shareholders will provide additional financing to resume production, the company’s parent, Pierer Mobility, said in a statement.

The company is backed by Bajaj Auto and Stefan Pierer, an Austrian entrepreneur known for his turnaround bets.

The approval comes in spite of opposition from US hedge fund Whitebox Advisors, a holder of KTM’s promissory notes, who had been calling for lenders to reject the company’s plan. The investment fund had been seeking allies among other investors of the Schuldschein loans, including small savings banks, to convince the company of its own proposal.

KTM filed for insolvency proceedings in Austria in November, as slowing sales after a boom during the coronavirus pandemic led to a build-up of inventory.

In its improved offer, KTM will pay out 30 cents for each euro of debt in one tranche, instead of over the course of two years.

Creditors filed insolvency claims totaling around INR 2.2 billion, the creditor association said.

Co-owner Bajaj Auto has put forward INR 50 million to pay for KTM’s immediate operational costs, according to a statement on Monday. A further INR 100 million must be provided by the end of March.