BayWa AG lays foundation for full funding until 2027

• Agreement reached on key points of reorganisation
• Banks provide fresh liquidity of around EUR 500 million
• CRO Baur: "Good basis for converting existing loans into longer-term financing."
• CEO Pöllinger: "Crisis as an opportunity to focus on BayWa's core competencies." 

Munich, 7 October 2024 – BayWa has reached an agreement with its main financiers on a key points paper for the restructuring of the company until 2027 and, as already announced, will receive fresh funds totalling around EUR 500 million from them. More than 95 percent of all financial creditors have now agreed to constructively support BayWa's restructuring efforts through a standstill agreement until December 2024, thus 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. 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. Strategically, BayWa is well positioned with its future-oriented segments such as food, energy and construction,” said Marcus Pöllinger, CEO of BayWa AG.

The financing package is the result of weeks of intensive negotiations with BayWa's approximately 300 creditors. The clear objective is to find a consensual solution and to treat all financial creditors equally. A few have not yet agreed to the standstill agreement. 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.

The confidence of BayWa's main financiers in the company is the basis for a stable restructuring over a period of several years. It also provides a good basis for converting existing credit agreements into a longer-term financing agreement. “Discussions are already under way,” says 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.”