Baywa AG has secured a financing package to stabilize its liquidity through September, allowing it to address its financial troubles. The restructuring report draft, expected by the end of September, will play a key role in accelerating the company's consolidation efforts.
Baywa AG had initially planned to release its half-year financial results on August 8, but this has been postponed to September 27 due to ongoing audits. The restructuring report will help the company streamline operations, particularly its wind and photovoltaic project business.
The company has also agreed to a standstill arrangement with its lending banks until the end of September. This agreement is part of a financing package that includes approximately 550 million euros in fresh funds from key shareholders and creditor banks. The financing package comprises:
Bridging loans of 272 million euros from core banks
Subordinated shareholder loans of 125 million euros from Bayerische Raiffeisen Beteiligungs-AG (BRB AG) and Raiffeisen Agrar Invest (RAIG), with 75 million euros already disbursed
The sale of Baywa’s stake in BRB Holding GmbH for 120 million euros to BRB AG and DZ Bank
The sale of Baywa’s stake in BSV Saaten GmbH for about 10 million euros to RWA AG
Grain purchases from Baywa AG totaling 20 million euros by companies associated with RAIG
Baywa CEO Marcus Pöllinger highlighted that this financial package is a step toward reducing the company's debt and refocusing on profitability. The consolidation process, underway since the beginning of the year, aims to enhance the company’s resilience in a challenging market. The restructuring report will guide the reorganization of Baywa’s renewable energy segment, including its wind and solar energy projects managed by Baywa re AG.
Pöllinger anticipates that the company will finalize a sustainable restructuring plan and new financing arrangements by the end of September based on the forthcoming report.
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