Key creditors intend to call in their loans and break up the battery manufacturer, leaving Varta facing collapse. The lenders plan to spin off the household battery business and place it under new ownership. According to an analysis by FTI, the company faces a short-term funding gap of tens of millions of euros for ongoing operations. Furthermore, Varta requires substantial additional capital to ensure its long-term survival. To date, however, no investor has made a binding commitment to provide the necessary funds. While the consequences for other locations remain uncertain, around 350 jobs are already being cut in Nördlingen.
Creditors seek immediate repayment of loans
The creditor group comprises Deutsche Bank, RBC BlueBay, Blantyre, and Whitebox. They are invoking rights under the financing agreements from the 2024 restructuring. The battery company had already fallen below an agreed earnings threshold in the autumn of 2025, enabling the lenders to demand immediate repayment of their claims at that time.
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The financiers initially gave the management board time to produce a new restructuring report. Management was expected to present a viable financing plan by August 12. However, despite intensive talks, no binding commitment was reached. According to media reports, neither Porsche nor investor Michael Tojner is willing to provide further capital. Without fresh funds, Varta faces collapse, even if individual business units can continue to operate.
Varta Faces Collapse: Rescue Lasts Barely a Year
In July 2024, Varta initiated proceedings under the Corporate Stabilization and Restructuring Act. The group aimed to avoid standard insolvency proceedings through this measure. However, existing shareholders lost their stakes without compensation. Porsche and Michael Tojner subsequently stepped in as the new owners.
As part of the reorganization, €60 million in new equity was injected. In addition, creditors provided another €60 million via secured loans. This allowed Varta to reduce its financial debt from €485 million to approximately €230 million. Consequently, the company declared its financial restructuring complete in April 2025. Yet, just over a year later, it once again lacked the funds needed for ongoing operations.
Loss of major client exacerbates battery group’s funding gap
Varta has been hit particularly hard by the loss of its key customer for rechargeable coin cells. The Nördlingen plant was geared almost entirely toward this contract. Media reports identify the customer as Apple, though Varta has not confirmed the name. Consequently, the company is discontinuing CoinPower production and cutting around 350 jobs. A Chinese supplier is set to provide the batteries for Apple’s AirPods in the future.
Creditors are now primarily seeking to safeguard the battery group’s relatively stable household battery business. To this end, the division is to be spun off from the existing corporate structure; however, implementation requires regulatory and other approvals. Porsche had already acquired the V4Drive high-performance cell business in March 2025 and reorganized it as V4Smart; Varta now holds only a minority stake there with no operational influence. Without funding for the remaining business areas, Varta faces collapse—even if the household division finds a new owner.
Author: Blackout News
Sources: ntv (23.07.26) – Welt (23.07.26) – WirtschaftsWoche (22.07.26) – Reuters (19.05.26)