Restructuring report gives BayWa hope – Economy –

However, the group’s restructuring will take years. This includes “numerous operational savings measures,” for which CEO Markus Bollinger has already prepared the workforce, and the sale of individual business areas. This is likely to include, first and foremost, a majority stake in solar subsidiary BayWa re, which former minority owner Energy Infrastructure Partners (EIP), from Switzerland, has expressed an interest in. Their solar and wind projects are capital intensive and have ballooned BayWa’s debt mountain to more than five billion euros in recent years. The projects can no longer be sold profitably as they were in previous years. BayWa just wants to continue trading in solar modules, Reuters reported.

The BayWa Group, which is dominated by the cooperative sector, slipped into a serious liquidity crisis in the summer due to high interest payments and requested the report. This is a prerequisite for BayWa’s continued creditworthiness. Banks and owners – including Austria’s Raiffeisen Agrar Invest – have bridged the gap with a financing package worth EUR 550 million. However, a permanent solution should be found by the end of the year at the latest. The loans are limited until the end of September, but can be extended for up to three months.

The draft restructuring report is the basis for discussions with the banks. BayWa explained that “negotiations with the financing partners (…) on the concept of restructuring and reorganization of the financing are continuing constructively.” The board assumes that they can be successfully completed. The final renewal report is not expected until after the financing is completed.