New Baywa restructuring plan provides for interest waivers and shareholder disempowerment

As part of the ongoing restructuring process at the ailing Baywa Group, a new agreement has been reached between the Executive Board, the main lenders and the two major shareholders. According to a press release issued by the Group on 30 June, the parties have agreed on a memorandum of understanding, which is to be further developed and culminate in a new restructuring agreement by autumn 2026.

The new agreement therefore provides for the restructuring period and the maturity of debts and liabilities to be extended until the end of 2030, as well as for interest payments to be reduced or waived for the group. Furthermore, banks and lenders are to cease treating part of the existing debt – up to 700 million euros – as ordinary debt, and instead convert it into a subordinated form of financing. This would strengthen the group’s economic equity base, whilst the creditors concerned would only…