(Bloomberg) -- Varta AG’s creditors including RBC BlueBay Asset Management are in talks with Porsche AG to join forces on a restructuring deal for the embattled battery maker.
The creditor group, which also includes Blantyre Capital, Deutsche Bank AG and Hayfin Capital Management, is seeking to find a compromise with the luxury sportscar maker after proposing an alternative plan last week, according to people familiar with the matter, who asked not to be named because they aren’t authorized to talk about it.
The battery maker has been in talks with creditors and potential new investors as it struggled with a slump in demand in its core markets while grappling with the impact of a cyberattack in February.
Spokespeople for Varta, majority shareholder Michael Tojner, Porsche, BlueBay, Blantyre, Deutsche Bank and Hayfin declined to comment.
A deal tabled by Porsche and Tojner would raise about €100 million ($108 million) of fresh funds. That would include €40 million of new equity, €20 million from the sale of intellectual property and €40 million of new debt, the people said.
Porsche aims to take a majority stake in Varta’s e-mobility battery unit as well as a minority interest in the entire group. The carmaker has confirmed it’s open to taking a larger role in Varta’s restructuring “to keep this key technology in Germany.”
The credit funds’ proposal envisages €100 million of fresh funds, with €20 million coming from the IP sale and about €80 million in super-senior loans which would be first in line of repayment.
Both proposals would entail wiping out the current equity holders and delisting Varta’s shares. The two groups are looking to agree on a joint plan within two weeks, the people said.
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