BayWa AG: Share crash after order for restructuring report
The BayWa Group is in crisis. An expert is to assess the strained financial situation. This announcement has consequences.
The BayWa-Group cannot rest. The Schuldenlast des Mischkonzerns is apparently so huge that a restructuring restructuring report is to assess the situation. Late on Friday evening (12.7.), the company announced in an ad hoc announcementabout the step.
"BayWa AG has commissioned a restructuring report. This is BayWa's response to a strained financing situation", the press release states succinctly. The Board of Management assumes that the financial situation can be sustainably strengthened on the basis of "constructive discussions with financing partners and the measures initiated". BayWa is thus continuing to pursue its consolidation course.
BayWa share plummets at the start of trading
Nevertheless, the stock market reacted to the news from Munich with extreme concern. Over the weekend, the share of the agricultural trader, which is groaning under billions in debt, lost around 20 percent in pre-market trading.
In a briefing on the market situation this morning (July 15), Deutsche Börse AG expected the share price to plummet by more than 30 percent.
In fact, one hour after the opening of trading in Frankfurt, the share price was quoted at just EUR 13.80; this was 38 percent less than on Friday before the commissioning of the restructuring report was announced. The share price subsequently recovered somewhat.