Green Light for BayWa AG's Restructuring Plan, Aiming for Financial Recovery
Restructuring plan of BayWa approved by the court - Approval granted for Baywa's redevelopment scheme by the court.
Great news for BayWa AG! The company has received a green light to proceed with its restructuring plan, court-approved following the required majorities being met in the proceedings under the German Act on the Stabilization and Restructuring Framework for Businesses (StaRUG)[1][2], effective mid-May 2025.
Bracing for a Sustainable Future
The restructuring plan primarily targets extending BayWa's multibillion-euro liabilities until the end of 2028 at higher interest rates[1], an essential step as it evades a substantial debt repayment of €1.41 billion due in June 2025, which the company was on the verge of defaulting[1].
Core Components of the Strategy
- Debt Extension: Prolonging the company's liabilities until 2028, BayWa AG can manage its debt obligations more sustainably[1].
- Capital Increase: A capital increase of approximately €201.6 million is facilitated by the plan[3].
- Asset Sales: Laying the groundwork for selling significant business parts by 2028 to primarily settle the debt, as indicated by restructuring board member Michael Baur[1].
- Operational Continuity: The restructuring under StaRUG has no effect on operations, ensuring the smooth operation of the business for customers, suppliers, subsidiaries, and employees[3].
This court approval marks a significant milestone for BayWa AG, paving the way for the company to stabilize its financial situation while maintaining operational continuity. With the restructuring plan now underway, BayWa AG can steer towards financial recovery, seizing opportunities to expand sustainably in the long term.
- BayWa AG
- Sanierungsplan
- Sanierung
- Amtsgericht München
- German Act on the Stabilization and Restructuring Framework for Businesses (StaRUG)
- Restructuring Board Member Michael Baur
The court-approved restructuring plan for BayWa AG, supported by the German Act on the Stabilization and Restructuring Framework for Businesses (StaRUG), includes extending their multibillion-euro liabilities for debt management and extending financial recovery. To facilitate this, BayWa AG will implement vocational training programs to develop skilled workers that can assist in essential business operations within the industry, contributing to the long-term sustainability of their business. This strategy, which also involves debt extension, capital increase, asset sales, and operational continuity, is aimed at strengthening BayWa AG's ties within the business community and developing a promising partnership with potential investors in the finance sector.
