BayWa Initiates StaRUG Restructuring to Finalize Financing Agreement and Secure Long-Term Transformation

BayWa Initiates StaRUG Restructuring to Finalize Financing Agreement and Secure Long-Term Transformation

(IN BRIEF) BayWa AG has reached an agreement with over 95% of its financial creditors on a long-term restructuring and financing plan, which will extend until 2027. However, a few dissenting creditors led BayWa to initiate restructuring proceedings under the StaRUG framework to include them in the process. The StaRUG proceedings, referred to as “StaRUG light,” will have no impact on daily operations or employees. The company will implement a €150 million capital increase, maintaining shareholders’ rights. BayWa aims to conclude the restructuring proceedings within a few months. The company has also announced that the publication of its 2024 financial statements will be delayed, possibly affecting its Annual General Meeting.

(PRESS RELEASE) MUNICH, 31-Jan-2025 — /EuropaWire/ — BayWa AG has secured agreement from over 95% of its financial creditors on a comprehensive restructuring concept and long-term financing plan extending until the end of 2027. Despite broad support, a small number of creditors have not agreed to the plan, prompting BayWa AG to initiate restructuring proceedings under the German Stabilization and Restructuring Framework for Companies (StaRUG) at the Munich Local Court. This step is necessary to include the dissenting creditors while ensuring the planned restructuring proceeds without disruption.

The StaRUG process, however, will not affect BayWa’s day-to-day operations. Customers, suppliers, and employees will see no impact as the restructuring proceedings apply solely to the parent company, BayWa AG, and not to its subsidiaries. The company has clarified that the StaRUG proceedings, classified as “StaRUG light,” do not involve debt waivers by creditors, and no capital reduction is planned. Instead, a €150 million capital increase will be carried out, allowing shareholders to participate equally and benefit from full subscription rights.

Michael Baur, Chief Restructuring Officer (CRO) and board member at BayWa, described the move as a “microsurgical approach,” ensuring the restructuring can continue smoothly without interrupting business operations. Baur emphasized that the financing plan, which has already been largely agreed upon, is designed to solidify BayWa’s future operations while maintaining shareholder rights.

The goal of the StaRUG proceedings is to resolve the few remaining creditor disagreements, with the proceedings expected to be concluded within a few months. While the proceedings are progressing, the publication of BayWa’s 2024 financial statements, originally scheduled for March 2025, will be delayed, and the Annual General Meeting set for May 2025 may also be postponed.

The restructuring measures undertaken by BayWa will provide the company with the legal certainty necessary for implementing its long-term transformation strategy and ensuring stability in its operations moving forward.

Media Contact:

Dr. Frank Herkenhoff
Phone +49 89 9222-3680
Mobile +49 170 3780993
frank.herkenhoff@baywa.de

SOURCE: BayWa AG