BayWa restructuring terms envisage near-total hybrid-bond losses

BayWa ($BYW6) reached agreement on a restructuring term sheet with 267 of the 268 lenders whose consent is required, representing 99.98% of the relevant liabilities, alongside its two major shareholders. The proposal is intended to extend the group’s restructuring framework and establish the basis for definitive agreements.

The terms envisage holders of the hybrid bond surrendering almost all principal and all accrued interest without compensation. That makes the proposal particularly consequential for those creditors, while the broader restructuring remains unfinished. Consent from the remaining lender, relevant governing bodies and completion of binding documentation are still required. The announcement is therefore not confirmation that the proposed write-downs have already occurred or that BayWa’s financing problems have been fully resolved.

Sources:

• BayWa — ad hoc restructuring announcement, EQS