Battery maker Varta has agreed a financial restructuring that recapitalises the struggling firm. The balance sheet restructuring focuses on a haircut, which will reduce the existing financial liabilities from €485 million ($539 million) to €200 million.
Its share capital is reduced to zero and it is provided with €40 million ($44 million) in cash and €60 million in new funds through a senior secured loan.
CFO Marc Hundsdorf said the implementation of the measures agreed means the group’s financing and liquidity are now sustainably stabilised and secured for the long term.
The company said the capital increase will be initially subscribed by the German sports car manufacturer Porsche and a company controlled by DDr Michael Tojner, MT InvestCo.
The new senior secured loan will be provided by existing lenders. In future, they will have a virtual shareholding of 36% in Varta, with the remaining 64% being shared equally by MT InvestCo and Porsche.
Varta’s energy storage solutions are aimed at private and commercial applications. It makes lithium-ion battery packs and lithium-ion large cells, as well as household batteries.
