July 2 (Bloomberg) -- Porsche SE will probably fail to persuade German state lenders to increase funding as the carmaker struggles to refinance 9 billion euros ($12.7 billion) in debt, according to a state parliamentary leader.

Landesbank Baden-Wuerttemberg won’t raise its 2 billion- euro share of a 10 billion-euro loan made in March, and Porsche will find it “difficult” to get other lenders to boost contributions, said Hans-Ulrich Ruelke, chairman of the Free Democrats in the parliament of Baden-Wuerttemberg, Porsche’s home state.

“This amount is already fairly considerable and there’s no room to top it up,” Ruelke, whose party rules the state in a coalition with Chancellor Angela Merkel’s Christian Democrats, said in a telephone interview today.

Porsche probably won’t convince state lenders Helaba, WestLB and BayernLB, who participated in the original credit line, to commit to more money, Ruelke said. The maker of the 911 sports car wants banks to fill a gap of 1.75 billion euros after state-owned development bank KfW Group turned down a loan request, a person familiar with the situation said on June 30.

Debt at Porsche tripled in the six months through January as the company accumulated shares of Volkswagen AG, Europe’s biggest automaker, to reach a 50.8 percent holding. The sports- car maker’s controlling Porsche and Piech families said in May that they’re open to a new investor. Porsche said on June 29 that Qatar’s government made an offer for an undisclosed stake as well as for Volkswagen share options that it holds.

Eastern Europe Unit

Baden-Wuerttemberg state Premier Guenther Oettinger said on June 30 that he will “campaign” for Porsche to win alternative funding. Ruelke said “one option” for the Stuttgart, Germany- based carmaker would be to sell Austrian Porsche Holding GmbH, the eastern European distribution division that is fully owned by the two families.

Porsche said June 30 that it won’t reapply to borrow 1.75 billion euros from KfW. The banks involved in the 10 billion- euro credit facility are Barclays Capital, Commerzbank AG, LBBW, Deutsche Bank AG, UBS AG, Credit Suisse AG, Banco Santander SA, BayernLB, BNP Paribas, Calyon, UniCredit/HVB, Helaba, Intesa, WestLB and DZ-Bank. The loan has two tranches spanning 12 months.

To contact the reporters on this story: Andreas Cremer in Berlin at acremer@bloomberg.net.

Last Updated: July 2, 2009 06:08 EDT