StaRUG is approaching or ?
How is the mood ?
Billions in debt pile up
Baywa has to withdraw forecast - former board member settles accounts with successor
06:22 - Finance100
The agricultural group Baywa is heavily in debt. Now the company has to cut its targets. Klaus Josef Lutz, Baywa's long-standing board member, has now settled accounts with his successor. He is probably not the right person for the current challenges.
Indebted Baywa withdraws forecast
At the same time, Baywa announced preliminary figures for the first half of the year, which are, however, subject to the review of assets to be carried out. For this reason, the publication of the half-year report, which was originally scheduled for August 8, has been postponed to September 27, as Baywa also announced.
Baywa, which emerged from the cooperative movement
with around 24,000 employees, has current and non-current liabilities of around 5.6 billion euros. Due to the rapid rise in interest rates on loans, the company's interest burden has tripled to 362 million euros between 2021 and 2023. Ten days ago, the Group published its "strained" financial situation and the appointment of a restructuring expert in a mandatory announcement to the stock exchange.
This caused concern not only in the financial scene: Baywa is of considerable importance for the food supply in southern Germany. The company is not only a supplier of seed, fertilizer and agricultural machinery, but also buys many farmers' crops. Many farmers are also small shareholders in the company.
Source: $BYW6 (-2,15 %) Finance 100
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.