Protective shield procedure: Battery manufacturer Varta files for bankruptcy

“Unlike in regular insolvency proceedings, the corporate responsibility remains in the hands of the management, which controls the restructuring itself (“self-administration”). The company is assigned an administrator by the court who – similar to a supervisory board – accompanies the restructuring,” says the homepage of the German consulting firm Deloitte. “During a well-prepared self-administration or protective shield procedure, a protective bell is set over the company. This gives those responsible time and peace of mind to develop and initiate the necessary measures for company recovery together with experienced restructuring professionals.”

But it is also a fact that the proceedings mark a further setback for Varta; the company has already struggled with economic difficulties in the past. This means that the company is apparently on the verge of being broken up.

The Austrian investor is involved in Varta Michael Tojner and the sports car manufacturer Porsche 50 percent each. According to media information, both shareholders were no longer willing to support the company, which had again run into difficulties, with fresh capital.

A split of the group is now becoming apparent: the most important creditors, including Deutsche Bank and several hedge funds, want to take over the profitable household battery business. Tojner has meanwhile signaled interest in the micro-battery business – these include button cells for hearing aids.