German battery maker Varta said on Saturday it had reached a restructuring deal with its creditors, hiring sports car maker Porsche to save the ailing business.
Varta’s debt will be reduced from 485 million euros ($534.86 million) to an initial 200 million euros, the company said.
Long negotiations between major shareholder Michael Tojner, creditors and Porsche led to a compromise to relieve Varta’s debt and provide it with fresh capital.
Tojner and Porsche will become the new owners of Varta and will provide a capital injection of 60 million euros.
A further €60 million will come from creditors in the form of senior secured loans.
A third investor could join the group later.
“We are in advanced discussions with other investors who would like to join us,” Varta Chief Executive Michael Ostermann told Reuters. ($1 = 0.9068 euros)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.