Porsche is currently sitting on about $15 billion in debt, including the $980 million from VWEnlarge Photo
The situation is a far cry from where Porsche stood just a few months ago, when it was attempting a takeover of VW. Now, it’s hoping for a merger but despite the change in situation Porsche is adamant that it’s not on the verge of insolvency.
In spite of the fact that Porsche owns 51% of VW, massive debts have forced the company to abandon its attempts to increase its stake in VW. At the start of this year, Porsche was operating under the shadow of a €9 billion debt, and the company was seeking around €10 billion in loans to help it refinance this debt.
Porsche is currently sitting on about €10.75 billion ($15 billion) in loaned funds, including the €700 million ($980 million) from VW, reports Automotive News.
For now, talks between Porsche and VW will continue about a possible merger, and in the meantime Porsche will also be looking for an extra €1.75 billion in loans to help keep the company propped up during the current financial crisis - a request to the German government for financial aid hasn't exactly been met with wide-spread support, and Porsche may have to seek other avenues for financing.