German battery maker Varta files insolvency applications
Key creditors, such as Deutsche Bank, intend to take over Varta’s household battery business, while Tojner has expressed interest in the micro-battery division.
German battery manufacturer Varta has filed four insolvency applications, a spokesperson for the Stuttgart Local Court has said, Reuters reported.
Varta’s shareholders Porsche AG and Michael Tojner have declined to provide additional funding to the struggling company.
Key creditors, such as Deutsche Bank, intend to take over the household battery business, while Tojner has expressed interest in the micro-battery division, according to the Reuters report.
“We are focusing our efforts on ensuring that business operations continue with as few disruptions as possible. To this end, we are engaging in intensive dialogue with employees, customers, and suppliers,” said Tobias Wahl of Anchor Rechtsanwälte, the provisional insolvency administrator appointed by the Stuttgart Local Court, according to a press release issued by Varta.
The management team led by CEO Michael Ostermann will remain in place and work closely with Tobias Wahl’s team, Varta said.
“The harmonization of procedures simplifies the further course of the restructuring. This allows management, the workforce, and the provisional insolvency administrator to work together more effectively,” said Varta CEO Michael Ostermann.
According to a report by Renewables Now, the German battery manufacturer has been hit by deteriorating market conditions, weaker demand and adverse currency exchange rate movements.
