Restructure of German battery maker Varta legally binding

Shareholders left empty-handed by a planned restructuring of Swiss-owned battery maker Varta AG have had their appeals against the turnaround plan rejected by the Regional Court of Stuttgart, in Germany.
The troubled German battery maker, owned by Swiss technology company Montana Tech Components, had agreed a turnaround package which would include shareholders losing their investment in order to wipe the company’s slate clean.
The appeals, on points of law, against the restructuring plan approved by the Restructuring Court of Stuttgart were dismissed by the regional court on Jan. 23, 2025, ensuring the turnaround plan is legally binding and hastening delisting from the Frankfurt Stock Exchange.
The restructuring, which has seen 800 jobs shed when contract expiry is included, will see Varta’s indirect majority shareholder Michael Tojner and Volkswagen-owned carmaker Porsche supply €60 million ($62.9 million) of new equity in the company after the previous stock is removed.
Creditors have agreed to take a €255 million “haircut” on the €485 million owed them, for a new borrowings level of around €230 million, and the restructured Varta will then take out a €60 million loan to address its liquidity requirements. The business’ lenders, in April 2023, had agreed to finance the company through 2026.
Porsche will also take majority ownership of the V4Drive Battery GmbH Varta subsidiary which manufactures lithium-ion round cells for its 911 Carrera GTS car.
The shareholding structure of the reconstituted Varta business will see Tojner and Porsche hold around 32% each and other creditors the remaining 36%.
Varta has been hit by lower-than-expected demand for electric vehicles and, when announcing its drastic restructuring plan, in April 2023, said it intended to expand its activity in the, non e-mobility energy storage segment.