After the failure of your complaint against the renovation plan for the battery manufacturer Varta before the Stuttgart Regional Court, the German Protection Association for Securities (DSW) now wants to bring the case to the Federal Constitutional Court.
“The Varta case again shows that investors are left in the rain in starug procedures by expropriating them cold and without compensation,” said DSW general manager Marc Tüngler.
The law must be reformed with urgency, according to Tüngler and also referred to the case of the electrical system specialist Leoni. “At the latest with the sale of the renovated Leoni AG to the Chinese after expropriation of the free shareholders with misuse of the Starug, the considerable abuse potential of the law has been shown,” said Tüngler. For this purpose, it was never created by the legislator. The Starug Restructure Act allows financially stricken companies to push the old shareholders out of the company before bankruptcy in the course of a renovation.
In the Varta case, the Stuttgart Regional Court had finally rejected the complaints of shareholders against the renovation plan last week, through which the Varta shares became worthless. At the same time, only Porsche and majority shareholder Michael Tojner got the chance to draw new Varta shares.
For the free shareholders, this means “the complete loss of their property without the possibility of participating in a future of Varta AG,” says the DSW announcement. Shareholders were ready to renovate and would have signaled this. The district court of Stuttgart had not even dealt with the arguments of the owners materially, Tüngler criticized. On top of that, the way to the Federal Court of Justice was also blocked with succinct arguments.
According to its own information, the DSW represents around 1,000 investors in the procedure.
On Tuesday, Varta shares in the Xetra business ultimately broke down by 7.52 percent to 0.91 euros.
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