In the past, the company has aggressively invested in promising business models and also borrowed capital for this purpose. However, the development of some of the business areas fell well short of expectations. As a result, earnings have recently not been sufficient to achieve a sustainable positive operating result that is commensurate with the current debt burden and financial resources. The restructuring gives the VARTA AG group the opportunity for a financial restart in order to become competitive again in the long term.
VARTA AG notified a StaRUG proceedings
VARTA AG notified the competent local court of Stuttgart of a restructuring project in accordance with the German Corporate Stabilization and Restructuring Act (StaRUG).
Why StaRUG?
We want to avert a possible insolvency of the company in the long term.
Current situation of the VARTA AG Group
The current debt situation is likely to jeopardise the VARTA AG Group's chances of achieving a positive business result. As a result, necessary investments will have to be cancelled, which means that market potential will not be tapped and sales opportunities will be missed.
Debt and capital haircut, de-listing
A debt haircut offers a way out of this situation. This is an agreement between the debtor and its creditors that cancels part of the debt in order to restore the company's financial stability. However, VARTA's creditors would only be prepared to take this step at the present time if a capital reduction to zero is implemented (the existing share capital is reduced to zero) and fresh capital required for the restructuring (debt or equity and debt capital) is injected. Following the capital reduction to zero, all of the existing shares will lose their value and VARTA AG will be permanently delisted from the stock exchange in the near future. This is necessary in order to finance the further reorganisation and the new start of the company.
This means that everyone loses - private and institutional investors, but also our creditors.
The aim of the restructuring is to create a fresh start for VARTA AG. By reducing the debt burden and engaging potential new investors, which will enable necessary strategic investments, sales potential can be utilised and market positions can be strengthened in the long term. Inthis way, jobs and value creation in Germany can also be secured while maintaining the key technology ‘battery’. The fact that VARTA is on the way to offering a sustainable perspective The fact that this path can only succeed through a withdrawal from the stock exchange and a capital cut to zero in order to inject fresh capital required for the restructuring is very painful for our loyal existing shareholders. Unfortunately, there were no scenarios in which shareholders would actually be better off.
Answers to the most important questions
Why does Varta AG need to be restructured?
Why does Varta AG need to be restructured?
Why was the previous restructuring plan not sufficient?
Why was the previous restructuring plan not sufficient?
What is StaRUG?
What is StaRUG?
What is the advantage of a StaRUG procedure?
What is the advantage of a StaRUG procedure?
How is the group of shareholders represented in the StaRUG?
How is the group of shareholders represented in the StaRUG?
What does a capital reduction to zero mean?
What does a capital reduction to zero mean?
What happens to the shares of the VARTA AG?
What happens to the shares of the VARTA AG?
Are the shares still tradable and for how long?
Are the shares still tradable and for how long?
Will there be a delisting, i.e. a withdrawal from the stock exchange?
Will there be a delisting, i.e. a withdrawal from the stock exchange?
Why doesn't VARTA remain listed on the stock exchange?
Why doesn't VARTA remain listed on the stock exchange?