The struggling battery manufacturer Varta receives the green light for its restructuring. The Stuttgart Regional Court has dismissed all complaints against the restructuring plan and has not allowed any further appeals, the company announced on Thursday. This clears the way for a comprehensive reorganization – at the expense of the free shareholders, who lose their entire investment.

The Association for the Protection of Capital Investors (SdK) reacted with sharp criticism to the court decision. SdK lawyer Markus Kienle described the ruling as "disappointing" and criticized the "ineffective legal remedies" under the restructuring law StaRUG. The investors' association announced it would file a constitutional complaint after an initial lawsuit before the Federal Constitutional Court had failed.

The restructuring plan provides for a reduction of the share capital to zero, effectively expropriating the existing shareholders. Subsequently, Varta is to be delisted from the stock exchange, while banks and creditors will waive claims amounting to 255 million euros, but will remain economically involved in the company in the future.

A particularly controversial aspect is that the capital reduction allows Varta to sell new shares exclusively to the previous majority owner Michael Tojner and the sports car manufacturer Porsche. Both invest 30 million euros each in the restructured company. A similar model was already applied in the restructuring of the automotive supplier Leoni, where free shareholders were also left empty-handed.

The SdK criticizes that the StaRUG allows crisis companies to temporarily set capital to zero before it is increased again under new investors – a practice that, according to critics, disadvantages small investors and favors large investors.

With the decision of the Stuttgart Regional Court, the rehabilitation plan is now legally binding. Nevertheless, the community of investors is preparing further legal steps to contest the complete loss of their shares.