There was a point in time when Porsche was the veritable king of carmakers, boasting strong sales, record profits and virtually unmatched customer loyalty numbers even while many of its rivals teetered on the edge of bankruptcy. But like all things that go up, there was bound to be an inevitable slide, and in the latest news surrounding debt-struck Porsche the company has been given a €700 million ($980 million) lifeline from Volkswagen.

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.