BayWa AG Approves Restructuring Plan, Extending Financing Until 2028 and Securing EUR 201.6 Million Capital Increase
(IN BRIEF) BayWa AG has secured approval for its restructuring plan under the German StaRUG framework. The plan includes extending financing until 2028 and a capital increase of up to EUR 201.6 million. Despite not meeting the quorum for shareholders, the approval of 93.29% of financial creditors is sufficient under StaRUG provisions. The company’s subsidiaries remain unaffected, and the restructuring will focus on extending the financing term and strengthening equity.
(PRESS RELEASE) MUNICH, 16-May-2025 — /EuropaWire/ — BayWa AG has successfully obtained approval for its restructuring plan, which was submitted as part of the proceedings under the German Act on the Stabilization and Restructuring Framework for Companies (StaRUG). The restructuring plan received overwhelming support from the required majorities during the court discussion and voting meeting, with the plan expected to be confirmed shortly by the local court in Munich.
Approximately 93.29% of the affected financial creditors approved the plan, with only two creditors raising questions during the meeting. Although the required quorum of 64% of total issued share capital was not met among shareholders, the approval of financial creditors is sufficient, as stipulated by StaRUG. The restructuring plan includes an extension of financing arrangements until December 31, 2028, and the approval of a capital increase of up to EUR 201.6 million, with further details to be determined by the Executive Board in consultation with the Supervisory Board.
CEO Dr. Frank Hiller commented, “Today’s decision is a positive signal for our customers and suppliers. It reinforces BayWa’s reliability and predictability in financial matters.” CRO and Board of Management member Michael Baur added, “This approval secures the financial foundation for the restructuring framework until 2028, allowing BayWa to continue focusing on its successful operational transformation.”
BayWa initiated the restructuring proceedings in January 2025, after a small group of financial creditors declined to accept the proposed financing structure. Despite sufficient available liquidity, the company was unable to make repayment to these creditors due to the principle of equal treatment for all financial creditors under StaRUG.
The StaRUG proceedings, which apply only to the parent company BayWa AG and not its subsidiaries, do not involve any waivers of claims by financial creditors or capital reduction from shareholders. Instead, the proceedings are focused on extending the term of financing and conducting a capital increase to strengthen equity, with all shareholders receiving subscription rights to participate equally.
The StaRUG mechanism allows companies like BayWa AG to implement a restructuring solution for financial creditors by means of majority decisions, even if they continue to operate a healthy business.
———-
First published in this link of EuropaWIRE.
