Porsche has agreed to provide financial support for Varta's restructuring.

Over the weekend, Reuters reported that the German battery maker confirmed a restructuring agreement with creditors. The agreement also involved automaker Porsche, which will assist the company's endeavor by handing out capital.

According to the agreement, the restructuring would decrease Varta's debt from 485 million euros ($537,491,550) to 200 million euros ($220,855,616).

Varta is known for manufacturing batteries for global automotive companies, as well as industrial and consumer markets. To achieve new capital and lessen its debt, Varta plans to compromise with major shareholder Michael Tojner, Porsche and other creditors.

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Per the agreement, Varta would now be owned by Tojner and Porsche. They would also provide financial backing of 60 million euros ($66,508,800) to the battery manufacturer.

Varta shared that the finances would arrive as secured loans from the creditors and commented that a third investor might also appear for the backing. Michael Ostermann, Varta CEO, told Reuters that the company is currently in talks with other interested investors.

Apart from the financial matters, Porsche will look to acquire high-performance batteries for its hybrid and sport EVs. It would also obtain a majority stake in Varta's V4Drive Battery division through increasing capital, according to Porsche on Saturday.

Executive Board Deputy Chairman of Porsche AG Lutz Meschke shared that the company's takeover of V4Drive would mark an "important contribution" to sustain key technologies in Germany.

Ostermann assured that no layoffs were imminent in the transition. The Varta CEO remarked that the company is still planning to expand and is currently looking for staff members. He also said that Varta would maintain its factories in Germany.

Though Varta plans to sustain its production, there are also "moderate job cuts" in process. Ostermann followed up that Varta is looking forward to returning on a "profitable growth path."

It was also reported that Varta would be taken off the stock exchange after the restructuring. Ostermann added that despite attempts to include small shareholders, the move would not be legally possible in the company's current situation.

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