MUNICH (dpa-AFX) - The Baywa Group, which is billions in debt, has brought a restructuring expert on board. The expert opinion is intended to improve the "strained financial situation", as the Munich-based agricultural trading and energy company with around 24,000 employees announced on Friday evening. At the same time, the Management Board expressed its optimism that it would be able to sustainably strengthen the financial situation thanks to "constructive discussions with the financing partners" and the measures introduced. One problem is the rise in interest rates, which is making the financing of the billions in loans immensely more expensive, as can be seen from the company's annual reports.

Red figures

The company did not initially disclose who the expert is and by when the restructuring report should be available. The company, which emerged from the cooperative movement, celebrated its centenary in 2023 and ended the anniversary year with a net loss of 93 million euros. In the first quarter, Baywa slipped even deeper into the red with a loss of 108 million euros. At the end of March, long-term and short-term debts of almost 5.6 billion euros weighed Baywa down. At the Annual General Meeting in June, CEO Marcus Pollinger announced socially responsible job cuts and the sale of non-essential business areas.

Expansion on credit

Most of this debt dates back to the tenure of Pollinger's predecessor Klaus Josef Lutz, who managed the company, which was previously limited to agricultural trade, until spring 2023 and transformed it into a conglomerate. The manager expanded virtually around the globe on credit and primarily built up the renewable energy business as a second pillar of the Group.

However, Baywa also made acquisitions in agricultural trade during Lutz's tenure: the company became the majority owner of the large New Zealand apple grower Turners and Growers, which operates its plantations worldwide. As a result, many German consumers who are not familiar with the company now have Baywa fruit in their hands. These include apples of the "Kanzi" and "Jazz" varieties, for example./cho/DP/he