The crisis at battery manufacturer Varta is becoming increasingly threatening. The company, which is in the process of restructuring, is now also lowering its revenue forecasts.
The company now expects a turnover of 750 to 800 million euros, 70 million euros less than previously estimated.
Restructuring procedures deter customers
Since the Starug process was launched to stabilize the company, Varta’s external image and reputation have deteriorated, putting pressure on sales of energy storage equipment, the company announced on Friday. In addition, sales of large lithium-ion cells would decline.
Just a few days ago, the battery manufacturer agreed on a rescue plan with lenders, promissory note creditors and future shareholders and signed the corresponding contracts. Recently, disagreements continued over the details of the negotiations that have been ongoing since July.
Trojaner and Porsche bring fresh capital
Austrian investor Michael Tojner and Porsche are providing a total of 60 million euros in equity. The remaining shareholders are left empty-handed. Varta had overextended itself with failed investments and had entered a crisis that threatened its survival. According to the restructuring plan, creditors are now renouncing more than half of the loans and promissory notes.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
