Germany's heavily indebted agribusiness group BayWa said on Tuesday that it now expects its restructuring to be completed by the end of 2030, pushing back its previous target of the end of 2028.
The Munich-based company had initially aimed to restore financial stability by 2028 but its management board and supervisory board now see the turnaround taking two years longer. As a result, bank loans are also set to be extended by two years.
The company said it had reached an agreement in principle with its creditor banks and its two main shareholders, with a formal restructuring deal expected to be finalized later this year.
BayWa plays a key role in agriculture and food supply, particularly in southern and eastern Germany. Founded in 1923, the company buys farmers' harvests while also supplying seeds, fertilizer and agricultural machinery.
Creditor banks as well as the two main shareholders - investment vehicles linked to Bavarian and Austrian banking groups - have agreed to take potentially painful measures.
The two major shareholders plan to transfer their combined 67% stake in BayWa to a trustee. Meanwhile, banks intend to convert €700 million ($799 million) of loans into a subordinated instrument, meaning their claims would rank below those of other creditors if the restructuring plan fails.
