Key Points:
- Varta has agreed to a restructuring plan with creditors, significantly reducing its debt and providing fresh liquidity.
- MT InvestCo and Porsche will play crucial roles in the company’s reorganization.
- The company’s debt will be reduced from €485 million to approximately €200 million.
- Porsche and MT InvestCo will inject €60 million of new capital in exchange for new Varta shares.
- The restructuring plan aims to secure Varta’s financing until the end of 2027.
Ellwangen, August 18 (FFN) – German battery manufacturer Varta has reached an agreement with its creditors on a restructuring plan designed to significantly reduce the company’s debt and provide fresh liquidity. The restructuring plan, announced on Saturday, involves key roles for MT InvestCo, controlled by majority shareholder Michael Tojner, and the investment division of carmaker Porsche, which will become a new shareholder in the company.
According to the plan, Varta’s debt will be reduced from €485 million to approximately €200 million through a combination of debt reduction and loan extensions. MT InvestCo and Porsche are set to contribute €60 million in new capital in exchange for new Varta shares. This reorganization concept is designed to secure Varta’s financing until the end of 2027.
Varta has been hit hard by several factors, including rising material and energy costs, increased competition, and a cyberattack that disrupted production in February. These challenges have emerged at a time when the automotive industry is heavily investing in the transition to electric vehicles, adding further pressure on Varta to adapt to rapidly changing market conditions.
The restructuring is seen as a crucial step for the company as it seeks to avoid potential insolvency. Porsche had already announced in July that it was considering participating in Varta’s restructuring in exchange for a minority stake in the group. This move is part of a broader strategy within the automotive industry to strengthen positions during the rapid shift towards electric mobility.
Successful implementation of this restructuring plan is expected to stabilize Varta’s financial situation and ensure the long-term sustainability of its operations in an environment of growing global competition and technological change.
