Banks will provide fresh liquidity of around €500mn as group gears up for multi-year operational reorganisation
BayWa has announced that it has reached an agreement with its main financiers on a key points paper for the restructuring of the company until 2027.
The German company will receive fresh funds totalling around €500mn from its financiers.
It confirmed that more than 95 per cent of all financial creditors had now agreed to constructively support BayWa’s restructuring efforts through a standstill agreement until December 2024, creating ”a stable framework for the finalisation and agreement of the long-term restructuring solution”.
The final restructuring concept is expected in December 2024.
“Within a short period of time, we have succeeded in laying the foundations for a multi-year operational reorganisation,” said Marcus Pöllinger, CEO of BayWa AG.
”BayWa can once again be a reliable partner for our customers, suppliers, employees and financing partners.
”The company will use the crisis to focus on its core competencies and emerge stronger,” he noted. ”Strategically, BayWa is well positioned with its future-oriented segments such as food, energy and construction.”
The group outlined that the financing package was the result of ”weeks of intensive negotiations” with its approximately 300 creditors.
The clear objective, BayWa noted, was to find a consensual solution and to treat all financial creditors equally.
”A few have not yet agreed to the standstill agreement,” it stated. ”For reasons of equal treatment of all financial creditors, there will be no isolated repayments of individual financial liabilities despite sufficient liquidity and full financing.
”The support of almost all financial creditors enables BayWa to implement the planned reorganisation even against the resistance of a few financial creditors. This will have no impact on the overall financing package and the progress of the operational reorganisation.”
BayWa said that the confidence of its main financiers in the company was the basis for a stable restructuring over a period of several years.
It also provided a good basis for converting existing credit agreements into a longer-term financing agreement.
“Discussions are already under way,” said Michael Baur, CRO of BayWa. “The confidence shown by our financing partners in the process so far makes us optimistic that we will be able to realise the long-term financing solution we are aiming for with a restructuring period until 2027.”
