- Varta, a German battery manufacturer, plans to complete its restructuring process by the end of this year, according to a company spokesperson.
- The restructuring agreement with creditors needs to be documented and submitted to the relevant court, which may take several weeks.
- Varta announced an agreement with creditors and investors over the weekend to reduce debt and secure new financing, with Porsche as a key participant.
- The company’s goal is to finalize the restructuring by the end of 2023, ensuring financing until 2027.
- Varta employs approximately 4,000 people and recently entered pre-insolvency proceedings due to financial difficulties, leading to a sharp drop in its stock price.
- The company faces fluctuating demand for its small lithium-ion battery cells and competition from Chinese manufacturers, alongside challenges like a cyberattack in February that disrupted production.
Ellwangen, August 20 (FFN) – Varta, the German battery manufacturer, is working towards completing its restructuring process by the end of this year, following an agreement reached with creditors. This was confirmed by a company spokesperson on Monday, according to a report by DPA.
The restructuring agreement, which aims to reduce the company’s debt and secure new financing, needs to be documented and submitted to the relevant court. This initial process is expected to take several weeks, with the entire restructuring likely to span several months. Varta’s goal is to conclude the process by the end of 2023.
Over the weekend, Varta announced that it had reached an agreement with its creditors and investors, including Porsche as one of the main participants. If everything proceeds as planned, this will secure the company’s financing through to the end of 2027.
In July, Varta disclosed that it was experiencing financial difficulties and entered pre-insolvency proceedings, which caused a significant drop in its stock price. The company, which employs around 4,000 people, has been struggling with fluctuating demand for its small lithium-ion battery cells and faces stiff competition from Chinese manufacturers. Additionally, a cyberattack in February severely disrupted production for several weeks.
Varta reported a turnover of approximately EUR 554 million for the first nine months of last year, which is the most recent available financial data.
Financial and Operational Overview
| Metric | Details |
|---|---|
| Restructuring Timeline | To be completed by end of 2023 |
| Main Participants | Creditors, Investors, Porsche |
| Employment | Approximately 4,000 employees |
| Challenges | Fluctuating demand, competition from Chinese manufacturers, cyberattack |
| Recent Financial Data | EUR 554 million turnover (first 9 months of last year) |
