Solus Advanced Materials Extends Debt Guarantee of 26.19B KRW for Hungarian Subsidiary Volta Energy Solutions Hungary... Total Guarantee Balance Reaches 1.2T KRW, Subsidiary's Persistent Losses Demand Risk Management
Solus Advanced Materials decided to extend its existing guarantee for one year on a loan of 26.19B KRW (EUR 15M) from UniCredit Bank Hungary Zrt. to its Hungarian battery foil subsidiary Volta Energy Solutions Hungary Kft. (VESH).
The guarantee amount is small relative to equity (2.77% of 945.6B KRW), but the total debt guarantee balance of the company reaches 1.20T KRW, warranting monitoring of financial health.
VESH reported total assets of 1.22T KRW, liabilities of 493.4B KRW, and equity of 723.9B KRW as of end-2025, with net losses of 39.9B KRW (2025), 18.5B KRW (2024), and 48.0B KRW (2023), indicating persistent losses.
This guarantee is an extension of an existing commitment, aimed at maintaining operational funding rather than new financing.
The subsidiary is wholly owned through a sub-subsidiary, providing control but posing contingent liability risks if its financial performance does not improve.