Baywa's Financial Recovery Delayed by One Year Due to Restructuring Challenges

The Munich-based agribusiness giant faces extended restructuring timelines after divesting a majority stake in its renewable energy subsidiary.

Baywa AG's restructuring timeline has been extended to the end of 2028, a year later than initially planned, due to financial and operational challenges.
The company sold a majority stake in its renewable energy subsidiary Baywa r.e. to Swiss investor Energy Infrastructure Partners (EIP), reducing its ownership from 51% to 35%.
Baywa AG's decision to forgive €350 million in loans to Baywa r.e. has further weakened its equity position, necessitating an extraordinary shareholder meeting.
Baywa AG is pursuing a restructuring process under Germany's StaRUG law to address resistance from a major creditor, delaying the submission of its updated recovery plan.
The company reported significant financial losses in 2024, driven by prior debt-fueled expansion, and has announced a 16% workforce reduction to stabilize operations.