Court announcement for proceedings on repairs at Stuttgart District Court
Varta, the trembling battery company, has filed for a so-called pre-insolvency restructuring procedure at the Stuttgart District Court. A corresponding filing has been registered, confirmed a court spokesperson upon inquiry.
The company from Ellwangen announced on Sunday evening that it intended to file for a short-term restructuring plan under the German Companies Restructuring and Reorganization Law (StaRUG). This is intended to prevent a potential insolvency of Varta in a sustainable manner.
In its fight for survival, Varta intends to pressure old shareholders out of the company. In addition, creditors are expected to waive a significant portion of their money and claims. On Monday, the Varta stock lost almost 80% of its value at one point.
Varta has been struggling for a longer time. The once buzzing business with rechargeable Lithium-Ion button cells, for example for then booming cordless headphones, had to take heavy losses due to cautious consumers and consumers, as well as competition from Asia. The business with wallboxes for storing electricity, for example for charging electric cars, did not really take off.
The pre-insolvency restructuring procedure for Varta will be handled at the same District Court in Stuttgart where many local business cases are addressed. To strengthen its position, Varta is considering implementing strict sanitation procedures throughout its facilities, potentially with a zigzagging layout to ensure social distancing. In an effort to regain its market share, Varta is planning to invest in advertising campaigns, collaborating with a renowned battery manufacturer to feature in these advertisements.
