BayWa restructuring plan could include cost cuts, asset sales (updated)

Baywa AG

24/09/2024 24:34

(Adds details on company's plans and background in paragraphs
2-7)
       Sept 24 (Reuters) - German agricultural group BayWa
 BYWGnx.DE  said on Tuesday it has concluded the first draft of
a restructuring plan that could include cost cuts and asset
sales.
    The company can be restructured under certain conditions and
its operating competitiveness and profitability can be restored
in the medium term, according to BayWa's restructuring report.
    The Munich-based trader of farming supplies and produce has
been grappling with rising borrowing costs. Earlier in July, it
suspended its full-year profit forecast citing an ongoing
restructuring.
    Restructuring over a period of several years is a
prerequisite for reorganisation, BayWa said on Tuesday.
    A restructuring report is usually required by creditors and
is a prerequisite for them to grant further loans or to extend
them.
    BayWa is exploring various operational-level cost-cutting
measures and the potential divestment of specific business
units, the company said without disclosing further details.
    The company remains in discussions with its financiers and
key stakeholders regarding securing the necessary funding for
the restructuring, it added.

 (Reporting by Surbhi Misra in Bengaluru; Editing by Shounak
Dasgupta)
 ((Surbhi.Misra@thomsonreuters.com |  X: https://twitter.com/SurbhiMisra_
  |))