By Katherine Hamilton
Bel Fuse said it will record an impairment charge of up to about $14 million because Innolectric, a company in which it owns a stake, is initiating insolvency proceedings.
Innolectic, a German charging technology company, began insolvency proceedings in November as it has recorded several years of losses and its majority owner will not be able to provide future funding, Bel Fuse said on Wednesday.
Bel Fuse, which owns a one-third stake in Innolectric, said it was not interested in acquiring the remaining stake in Innolectric after the controlling majority owner said it couldn't provide its pro-rata share of funding.
Bel Fuse, a West Orange, N.J.-based electronic-components maker, expects to record the charge in the fourth quarter of 2025. The $14 million charge would reflect the full potential loss associated with the investment, including outstanding balance of notes receivable representing incremental loans previously extended by Bel Fuse to fund working-capital needs and business development.
The final amount of the charge will be determined after the insolvency process progresses further, said Bel Fuse.
Bel Fuse acquired the stake in February 2023 and, since then, Innolectric has recorded operating losses, said Bel Fuse.
The losses have been driven by the exit of certain companies from the market, fewer government incentives and weakness in the electric-vehicle industry, Bel Fuse said. Innolectric is expecting challenges to persist heading into 2026, Bel Fuse added.
Bel Fuse recorded losses related to its stake in Innolectric of about $400,000 during the nine months ended Sept. 30 and of $600,000 in 2024.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
December 03, 2025 14:04 ET (19:04 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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