MUNICH (dpa-AFX) – The SdK investors association wants to block the recovery plan of battery manufacturer Varta in the German Constitutional Court. The reason for this is the reduction to zero of the share capital planned as part of the restructuring, which would mean the complete loss of their money for the free shareholders. This is what the SdK announces during the presentation of the new edition of its annual “Black Book of the Stock Exchange”.
Accusation: the restructuring law leads to the expropriation of shareholders
The restructuring of Varta is taking place within the framework of the StaRUG restructuring law, which is intended to enable companies in crisis to avoid insolvency proceedings. SdK’s main criticism is that StaRUG allows joint stock companies to temporarily reduce their capital to zero before increasing it again. The free shareholders then have nothing left. “The legislator has thus established de facto an expropriation of shareholders without compensation,” the SdK criticizes the federal government in its new “Black Book”.
A second complaint is filed with the Stuttgart district court
The law offers a “high potential for abuse”, criticized SdK board member Markus Kienle. “For free shareholders, the implementation of the procedure is generally linked to a total loss.” The SdK wants to take action against Varta’s restructuring plan at two judicial levels: In addition to the constitutional appeal, SdK wants to file an immediate appeal with the Stuttgart district court against the validation of the restructuring plan by the court.
The Varta plan: reduction of debt and reduction of share capital
The two main elements of Varta’s recovery plan are a reduction in debt and a reduction in share capital to zero. Varta would be taken off the stock exchange and shareholders would be eliminated without compensation. “Whoever has the planning power also determines the outcome,” Kienle said.
Varta then wants to issue shares again – but only to a company of former majority shareholder Michael Tojner and to the sports car manufacturer Porsche. Both will devote 30 million euros each. A similar pattern had already occurred during the restructuring of the automotive supplier Leoni, during which the free shareholders also left empty-handed./cho/DP/stk
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