- Venta consents to reorganization with lenders
Struggling battery manufacturer Varta supposedly sorted out a deal with crucial financiers and loan providers concerning a reorganization plan. The objective is to substantially lessen the company's debt burden and offer it a renewed cash inflow, Varta disclosed in Ellwangen. The arrangement involves the incorporation of a firm controlled by Varta's significant stakeholder Michael Tojner (MT InvestCo) and a Porsche investment firm as new shareholders. This reorganization plan guarantees financing for Varta AG until the year 2027's end.
The planned debt restructuring and credit extension is expected to decrease the debt from the present 485 million euros to roughly 200 million euros. Subsequently, MT InvestCo and the Porsche investment firm will invest a combined 60 million euros in fresh capital and receive new Varta shares as compensation.
In the past, Porsche indicated its intention to purchase a majority stake in Varta's automotive battery subsidiary V4Drive Battery. Porsche also made it clear that it was willing to contribute to Varta AG's financial reorganization alongside other partners, with Porsche's investment coming in at 30 million euros.
Varta's financial reorganization plan includes the participation of a Porsche investment firm, which is based in Germany. The new shareholders, including a firm controlled by Michael Tojner and the Porsche investment firm, will help Varta AG financially until 2027's end.
