Published by Global Banking & Finance Review®
Posted on January 31, 2025
2 min readLast updated: January 26, 2026
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BayWa's shares fell after it sought court approval for restructuring to bypass dissenting creditors. The move aims to avoid insolvency.
(Reuters) - German agricultural group BayWa has initiated restructuring proceedings at a court in Munich in an effort to circumvent a minority of creditors opposed to its plan, the company said on Friday.
Shares in BayWa slumped by as much as a third following the announcement, and were seen down 3.47% at 1021 GMT. Shareholders and BayWa's operating businesses will not be affected by the proceedings, the company said.
The proceedings initiated by BayWa make use of a legal framework that provides instruments for a restructuring while allowing a company to avoid insolvency proceedings. Implementation requires consent from 75% of creditors.
More that 95% of BayWa's creditors already approved its restructuring agreement in December, according to the company.
The Munich-based trader of farming supplies and produce has been grappling with rising borrowing costs, forcing it to embark on a major restructuring, including job cuts, after racking up a consolidated nine-month net loss of 640.8 million euros ($664.77 million).
BayWa said the presentation of the company's full-year results - expected on March 27 - would be delayed, and that its annual general meeting may also be postponed as a result of the proceedings.
($1 = 0.9639 euros)
(Reporting by Alexander Huebner in Munich, Writing by Tristan Veyet in Gdansk, Editing by Friederike Heine)
BayWa has initiated restructuring proceedings at a court in Munich to circumvent a minority of creditors opposed to its plan.
Shares in BayWa fell by as much as a third following the announcement, with a reported decline of 3.47% at 1021 GMT.
More than 95% of BayWa's creditors had already approved its restructuring agreement in December.
BayWa is grappling with rising borrowing costs, which has forced the company to embark on a major restructuring, including job cuts.
BayWa announced that the presentation of its full-year results, expected on March 27, would be delayed due to the restructuring proceedings.
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