Bankruptcy fight: Porsche supports Tojner in Varta

The remaining shareholders will be left empty-handed, as the company's capital will be set to zero, as the German company's announcement shows. According to the company, the concept specifically envisages the entry of a company controlled by the former majority owner of Varta Tojner (MT InvestCo) and Porsche Holding as new shareholders.

“Despite the current economic challenges, the company offers great potential to make battery cell research and production in Europe more independent of Asian suppliers,” Tojner said, according to the agency, in an initial reaction. “We are committed to contributing to this. With today's agreement, we have taken an important first step together, which will ensure the stability of VARTA AG and pave the way for a new start.”

huge mountain of debt

Varta’s bankruptcy is therefore not on the table at the moment, a company spokesperson said in response to APA’s request. However, the so-called pre-insolvency procedure is still in effect. After bad and expensive investments, the traditional company is no longer able to service its mountain of debt.

The battery company filed for a pre-insolvency restructuring in July. According to previous statements by company chief Michael Ostermann, the group needs around €100 million in fresh money and a haircut to secure production until 2027. Varta owes around half a billion euros to major lenders such as banks and hedge funds.

“Advanced discussions with other investors”

“We hope to find a solution by the end of August or the beginning of September,” Tojner told the Frankfurter Allgemeine Zeitung in early August. As Tojner announced at the time, the rescue concept now being discussed should, among other things, be subject to procedures under the Corporate Stabilization and Restructuring Act (StaRUG).

In addition to Tojner and Porsche, other shareholders could join the list. “We are in advanced discussions with other investors who would like to join us,” Ostermann told Reuters.

Porsche plans to acquire Varta's V4Drive business

In this context, Porsche also expressed its readiness to participate “together with other partners” in the financial restructuring of Varta AG. Porsche's investment will amount to 30 million euros. At Porsche, simulation games also include the acquisition of a majority stake in Varta's subsidiary V4Drive, which specializes in automotive batteries.

Background information provided by Porsche: In this company, Varta assembles the business of the large-capacity round lithium-ion cells used in the hybrid drive of the Porsche 911 Carrera GTS. A prerequisite for the acquisition of V4Drive is, among other things, obtaining antitrust approvals in various countries.