German Battery Maker Backed by Klatten Files for Insolvency
A German battery-maker partly owned by the investment firm of BMW AG heiress Susanne Klatten filed for insolvency for some of its key units, citing the loss of an unnamed customer.
(Bloomberg) — A German battery-maker partly owned by the investment firm of BMW AG heiress Susanne Klatten filed for insolvency for some of its key units, citing the loss of an unnamed customer.
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BMZ Group, which manufactures lithium-ion battery systems, said that two of its units had filed for insolvency proceedings, according to a statement dated Oct. 24. The loss of a major customer in the energy storage sector led to legal disputes and increased costs, prompting a liquidity crisis, it said.
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Once the insolvency with self-administration is completed, the plan is to spin off the operational business of BMZ Germany GmbH into a new structure, it said. The parent company BMZ Holding also had to file for insolvency.
BMZ Group is one of the many battery producers that has faced difficulties as the industry’s heavy spending leaves companies with little wriggle room in the face of volatile demand and surging costs. Swedish battery maker Northvolt, once seen as the European champion, collapsed into US bankruptcy procedures last year. Others including Germany-based Varta also had to undergo financial restructuring.
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Other units that comprise BMZ’s core business will be unaffected by the insolvency proceedings, and shareholders have provided bridge financing and additional funds to allow operations to continue, according to the statement. The company said it planned to focus on battery systems for industrial uses and tailor-made energy solutions.
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SKion GmbH, which was founded by Klatten, took a 20% stake in BMZ Group back in 2022, according to its website. SKion specializes in buying significant minority stakes in European companies and came in as a strategic partner alongside BMZ founder Sven Bauer. Klatten owns about one-fifth of automaker BMW and is one of Germany’s richest people.
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A representative for SKion did not immediately respond to a request for comment.
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German Battery Maker Backed by Klatten Files for Insolvency, source
