German battery maker Varta aims to complete restructuring by year-end. (picture alliance/dpa | Stefan Puchner)
German battery maker Varta's restructuring needs to be documented and submitted to the relevant court following agreement from the boards of the parties involved, a Varta spokesman said on Monday.
The initial process could take a few weeks, and the full restructuring concept would probably take a few months, he said from company headquarters at Ellwangen. The aim was to conclude it by the end of the year.
Over the weekend, Varta announced agreement with creditors and investors on debt reduction and new funding, with Porsche one of the main participants.
If all goes according to plan, this will secure financing up to the end of 2027.
The company, which employs around 4,000 workers, reported it was in difficulties in July and entered into pre-insolvency proceedings. Its share price collapsed.
Demand for the small lithium-ion coin cells it makes fluctuates strongly, and the company has faced competition from Chinese companies.
It suffered a cyberattack in February that paralysed production for weeks. The company's management has also been criticized.
Varta posted turnover of around €554 million ($612 million) for the first nine months of last year, the last period for which figures are available on account of the cyberattack.
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