The German battery manufacturer, Varta AG, is once again bracing itself for possible debt restructuring. This move is in light of the recent economic downturn which has prompted the company to reevaluate its existing financial structure. At the forefront of these talks are two prestigious advising bodies – the international law firm, Freshfields Bruckhaus Deringer, and the global investment bank, Houlihan Lokey. These organizations were sought by a group of term lenders to Varta AG, which includes Blantyre Capital Ltd and Hayfin Capital Management.
Varta AG, majority-owned by Austrian businessman Michael Tojner, previously underwent debt restructuring after violating its lending contracts. The unprecedented COVID-19 pandemic, with its sustained impacts on the global economy, has further strained the company’s stability, particularly due to declining demands for its energy storage solutions. As a result, the looming debt talks have become a necessary measure to potentially salvage the integrity of this German battery pillar.
Knowledgeable sources who chose to remain unnamed due to the sensitive nature of the information have confirmed the developments. However, they have yet to release further specifics on the planned negotiations and potential overhaul of the financial structure.
For more details, please refer to the full article: Varta Lenders Tap Freshfields, Houlihan Ahead of Debt Talks.