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- German battery maker Varta (OTC:VARGF) announced Saturday that sports carmaker Porsche (OTCPK:POAHY) has agreed to provide the company with initial capital as it attempts to reorganize its business.
- Varta (OTC:VARGF) will receive €40M ($44M) in cash from new equity worth €60M ($66M) initially subscribed by Porsche (OTCPK:POAHY) and a company controlled by Michael Tojner, its majority shareholder.
- It will secure an additional €60M from existing lenders as part of a financing initiative that includes a senior secured loan. The restructuring effort will see Varta (OTC:VARTY) reducing its debt by €285M from €485M to €200M in the future.
- In July, Varta (OTC:VARTY) submitted court filings to seek restructuring to avoid potential long-term insolvency. Its German-listed shares crashed in reaction, as the plan involved delisting and left its shareholders with nothing.
More on Porsche, Varta, etc.
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