BayWa restructuring plan adopted with the required majorities

Plan assumption was made as part of the restructuring process in accordance with the German Act on the Stabilization and Restructuring Framework for Companies (StaRUG) Creditors approve extension of financing until the end of 2028 Capital increase of up to approx. EUR 201.6 million resolved No impact of the StaRUG proceedings on operations - customers, suppliers, subsidiaries and employees not affectedThe restructuring plan submitted by BayWa AG has received the approval of the required majorities at the court discussion and voting meeting as part of the StaRUG proceedings. Confirmation of the restructuring plan by the competent local court in Munich is expected shortly.Only two financial creditors raised questions during the two-hour meeting. The group of financial creditors approved the restructuring plan with a majority of 93.29%. The plan also met with the almost unanimous approval of the shareholders present or represented. Since, as expected, only just under 64% of the total issued share capital was represented at the meeting, the legally required quorum of of the total issued share capital was not achieved in this group. However, according to the provisions of the StaRUG, the approval of the financial creditors is sufficient in this case. The approximately 300 financial creditors affected by the plan agreed to an extension of the various loans until December 31, 2028. In addition, a capital increase of up to approximately EUR 201.6 million was approved. The further details of the capital increase are still to be determined by the Executive Board with the approval of the Supervisory Board.CEO Dr. Frank Hiller commented: "Today's decision is a positive signal for customers and suppliers: BayWa has become more reliable and predictable in financial terms."CRO and Board of Management member Michael Baur added: "The approval lays the financial foundation for the restructuring framework until the end of 2028. BayWa can now continue to focus on the successful operational transformation."In January 2025, BayWa AG initiated restructuring proceedings at the Munich Local Court in accordance with the German Act on the Stabilization and Restructuring Framework for Companies (StaRUG), as a very small number of financial creditors had refused to agree to the intensively negotiated financing concept. For reasons of equal treatment of all financial creditors, repayment to these individual creditors was out of the question, despite sufficient available liquidity.The financing concept to be implemented as part of the StaRUG does not provide for any waivers of claims by financial creditors or a capital reduction on the shareholder side. This distinguishes BayWa's "StaRUG-light" approach from other prominent StaRUG cases. At its core, it is about the extension of the term of the financing. In addition, a capital increase will be carried out in line with the restructuring concept to strengthen equity, in which all shareholders can participate equally. All shareholders will receive subscription rights. The proceedings relate exclusively to the parent company BayWa AG; subsidiaries are not part of the proceedings and are therefore not affected.The StaRUG enables companies that, like BayWa AG, essentially operate a healthy business to include all relevant financial creditors in a uniform restructuring solution by means of majority decisions as part of a restructuring plan. Weiter zum vollständigen Artikel bei BayWa AG (vink. NA) Weiter zum vollständigen Artikel bei BayWa AG (vink. NA)