Agreement offers respite to troubled conglomerate and T&G Global owner, with capital injection and loan extension to end of 2028
A restructuring plan submitted by German multinational BayWa is expected to be approved by a court in Munich under the terms of StaRUG, a legal framework that allows companies to reorganise their debts and operations without initiating formal insolvency proceedings.
In a statement, the group said only two of its financial creditors had raised questions during a two-hour meeting to review the plan, and that a majority of them – amounting to 93.29 per cent – as well as shareholders had approved the plan.
And despite the fact the meeting did not involve a legally required minimum percentage of shareholder representatives, BayWa said the provisions of the StaRUG meant that the approval of those creditors was sufficient in this case.
As BayWa’s statement explained, StaRUG enables companies that operate an essentially healthy business to involve their creditors in a restructuring plan by means of majority decisions.
In this case, the plan itself includes an agreement to extend various loans until the end of 2028, with a capital increase of up to €201.6mn also earmarked pending supervisory board approval.
Frank Hiller, BayWa’s CEO, commented: “Today’s decision is a positive signal for customers and suppliers: BayWa has become more reliable and predictable in financial terms.”
Michael Baur, the group’s chief restructuring officer, 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.”
As reported in January, BayWa was forced to take drastic action after falling profitability in parts of its business left it unable to meet its loan repayments.
Last autumn, it unveiled a restructuring plan that envisaged the sale of many of its foreign investments, as well as loss of up to 1,300 out of around 8,000 full-time jobs.
Reports also suggested it planned to sell off New Zealand-based T&G Global, the centrepiece of its Global Produce division.
Then it was compelled to take legal action to ensure its restructuring could go ahead.
BayWa’s Global Produce division incorporates a number of fruit and vegetable companies, including T&G Global, TFC Holland, BayWa Obst, and Al Dahra BayWa, as well as a 50 per cent share in Worldwide Fruit.
