Varta, a struggling battery manufacturer, is taking measures to avoid insolvency by implementing a financial restructuring plan. This plan includes pushing out existing shareholders and asking creditors to forego their claims.
Porsche, the sports car manufacturer, is considering becoming a new shareholder. Varta's debt is close to 500 million euros, and its stock price has plummeted from nearly 200 euros to around 2 euros.
The company has been unable to make necessary investments, resulting in missed revenue opportunities. Alongside household batteries, Varta also produces batteries for automobiles and energy storage.
However, the construction of a factory for large lithium-ion batteries has been put on hold. Porsche's involvement is contingent on the audit of Varta's financial situation.
The Volkswagen subsidiary intends to sell more than 80% fully electric vehicles by 2030, and participating in Varta's financial restructuring would help them secure key technology in Germany. Large creditors are skeptical of the proposed plan, as it excludes them from a capital increase and potential involvement in the company, raising concerns about fair treatment.
Varta's goal is to preserve itself as a technology pioneer in Europe and maintain nearly 4,000 jobs.
