Porsche agrees to provide equity in Varta restructuring deal by Reuters

FRANKFURT (Reuters) – German battery maker Varta said on Saturday it had reached a restructuring deal with its creditors, asking sports car maker Porsche to rescue 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.

Protracted negotiations between main shareholder Michael Tojner, creditors and Porsche led to a compromise to relieve Varta of debt and provide fresh capital.

Tojner and Porsche will become the new owners of Varta and provide a capital injection of 60 million euros.

Another 60 million euros will come from creditors as senior secured loans.

A third investor could come later.

“We are in advanced discussions with other investors who would like to join us,” Varta Chief Executive Michael Ostermann told Reuters.

(1 USD = 0.9068 euros)