The ailing battery manufacturer Varta has come one step closer to its restructuring. The majority of the ownership groups officially approved the restructuring plan at the discussion and voting meeting, the company announced on Monday. Only the group of free-float shareholders voted against the plan. The company expects that the responsible local court will approve the plan this year and that it can be implemented. According to a spokesman, the court date is scheduled for December 3rd.
In months of negotiations with creditors and possible lenders, the battery manufacturer, which had fallen into crisis, had finalized a restructuring plan that uses the Company Stabilization and Restructuring Act (StaRUG). This is intended to save companies that are actually operationally viable from having to go to the insolvency judge. If 75 percent of creditors agree to a solution, the others can no longer block it.
A haircut and the extension of loans are intended to reduce liabilities from almost half a billion euros to 230 million euros. The share capital of Varta AG is also to be reduced to zero euros. The effect: The shareholders leave without compensation and the group loses its stock market listing. Shares will then be issued again – but only to a company owned by Tojner and Porsche.