From pv magazine ESS News
German battery maker Varta AG said it has reached a restructuring agreement with its creditors, bringing on sports car maker Porsche as a majority stakeholder in the company’s car battery subsidiary, V4Drive Battery GmbH.
The agreement will reduce Varta’s debt from €485 million ($535 million) to €200 million.
“With the implementation of the measures agreed today, the group’s financing and liquidity are now sustainably stabilised and secured for the long term,” said Varta CFO Marc Hundsdorf.
Varta initiated a comprehensive restructuring concept in spring 2023, which among other measures, involved a termination of 800 full-time positions. Last month, the company notified the competent local court in Stuttgart of its restructuring plans in accordance with the German Corporate Stabilization and Restructuring Act (StaRUG) in a bid to avert possible insolvency.
Under the new plan, Porsche and current majority owner Michael Tojner are set to each hold around 32% of the company after participating in a €60 million capital increase. Existing lenders will hold the remaining 36% of the company.
The completion of the majority takeover of V4Drive, which focuses on large-format lithium-ion round cells used in the performance hybrid drive of the Porsche 911 Carrera GTS, is subject to antitrust approvals in various countries and the successful implementation of the financial restructuring of Varta AG.
“With the planned majority takeover of V4Drive, we aim to drive the company forward and would make an important contribution to keeping key technologies in Germany,” said Lutz Meschke, deputy chairman of Porsche's executive board and a member of its executive board for finance and IT.
The construction of another production facility for booster cells in Nördlingen, which was decided in spring 2024 and advanced by Porsche, will continue as planned, said the carmaker. The facility is scheduled to go into operation in 2025.
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