The struggling agricultural company BayWa has secured short-term financial rescue. In an ad-hoc announcement, the company stated that an agreement with creditor banks and major shareholders provides an inflow of fresh capital amounting to 547 million euros. This financial support is intended to give the company some breathing space over the next few weeks.
A consortium of core banks provides BayWa with a bridge loan of 272 million euros. Additionally, the main banks waived the repayment of already existing loans worth billions. Furthermore, the two main shareholders, Bayerische Raiffeisen Beteiligungs-AG (BRB) and Austrian Raiffeisen Agrar Invest (RAIG), provide subordinated shareholder loans totaling 125 million euros. Moreover, BRB and DZ Bank acquire BayWa's 45.3% stake in BRB Holding for 120 million euros.
Despite these measures, BayWa remains under significant pressure. The current credit agreements are only valid until the end of September. By then, an expert report is expected to clarify whether and how the company can be sustainably restructured. BayWa commissioned this report in July, and it is eagerly anticipated.
The Board of Directors of BayWa expressed optimism and emphasized that, due to the previous constructive discussions, a viable restructuring concept and a new financing arrangement seem realistic. However, the financial situation remains tense: BayWa has debts of around 5.4 billion euros, primarily caused by the renewable energy subsidiary BayWa r.e. This subsidiary is struggling with significant problems in the sale of solar and wind projects and requires substantial capital.
