Global law firm Dentons has advised the group of promissory note loan creditors of the battery manufacturer Varta AG in the context of Varta’s restructuring under a StaRUG procedure. The German Corporate Stabilization and Restructuring Act (StaRUG) offers companies a quick and targeted restructuring of their financial liabilities without the need for insolvency proceedings. The approved restructuring plan will enable the Varta Group to continue operations and become competitive again.
On October 31, 2024, the company notified the Stuttgart District Court of its restructuring plan in accordance with the StaRUG, which the shareholders and creditors voted on on November 25, 2024.
The qualified majority of the promissory note loan holders, with a nominal loan volume totaling €250 million, approved the negotiated restructuring plan. The restructuring plan implements the financial restructuring based on the reorganization concept, in which Varta AG’s financial debt burden will be reduced from €485 million to approximately €230 million. The group of promissory note loan creditors and the other creditor groups approved the plan with the required majority, while only the group of shareholders voted against the plan. The restructuring court has now confirmed the plan by court order dated December 11, 2024, as part of a group majority cross-class-cram-down decision.
Based in Ellwangen in Baden-Württemberg, Varta produces and markets a comprehensive battery portfolio including microbatteries, household batteries, energy storage systems, and customer-specific battery solutions. The Varta Group currently employs almost 4,200 people and operates in more than 75 countries worldwide, including five production and manufacturing facilities in Europe and Asia, as well as distribution centers in Asia, Europe and the United States.
A team from Dentons, led by Berlin-based partner Andreas Ziegenhagen, Head of the Europe Restructuring Practice, coordinated and advised the promissory note loan creditors (“Schuldscheingläubiger”) in connection with the agreement and implementation of the restructuring plan. The team will continue to support the reorganization as a representative of the promissory note loan holders.
