Small shareholders in danger: Varta renovation meets private investors hard!

Small shareholders in danger: Varta renovation meets private investors hard!

Ellwangen, Deutschland - The Federal Constitutional Court has not accepted a constitutional complaint from small shareholders against the renovation plan of the battery manufacturer Varta. In a decision, the complaint was declared inadmissible how the Süddeutsche Zeitung reports. This lawsuit aimed at the decision of the district court, which was also confirmed by a district court.

The controversial renovation plan provides for a reduction in share capital to zero, which would lead to a complete loss for the free shareholders concerned. These criticize the plan as an inadmissible interference in their property and complain about illegitimate goals as well as the lack of necessity and appropriateness of the restructuring. Special mention was made that the constitutional complaint did not specifically address the statements of the regional court. Varta is renovated as part of the Starug Restructing Act. In addition, the Federal Constitutional Court announced that a further constitutional complaint is pending in this matter, which has not yet been decided.

problem for small shareholders

For the small shareholders of Varta, especially from Ellwangen, the total loss of their shares now threatens The SWR Aktuell . Their shares fall and the stock exchange trading is set. Varta plans a new beginning in cooperation with Porsche and the major shareholder Michael Tojner and receives additional loans for this. Despite these measures, some small shareholders announce resistance to the renovation plan and have filed a lawsuit from the Federal Constitutional Court.

The content of the lawsuit refers to the compensationless exclusion of the right to subsidize, which should violate the guarantee of ownership. So far, the Federal Constitutional Court has confirmed the receipt of this lawsuit. It is important to mention that the success rate of constitutional complaints in Germany in the past ten years is only 1.66 percent. In the course of the financial renovation, Varta and its creditors agreed on a cutout in which the creditors do without half of their claims. However, this debt cut is only accepted if the equity is reduced to zero.

Varta faces numerous challenges that are due to a fluctuating demand for lithium-ion button cells and management errors. Critics accuse the company too much dependence on its main customer Apple and careless investments. Varta currently employs around 4,000 people and has locations in Ellwangen, Dischingen (Heidenheim) and Nördlingen (Donau-Ries district).