BayWa Creditors to Weigh Rival Motion as Hybrid Bond Showdown Nears
Published on 10/10/2026 at 15:40 | Editorial boerse-global.de
BayWa AG's restructuring has entered a new phase of legal maneuvering, with the issuer of its guaranteed hybrid bond adding a counter-motion to the agenda just days before creditors are due to vote. Kronos EKS AG & Co. KG confirmed on Thursday that it has included a proposal to transfer the issuer role back to BayWa AG among the items to be decided — a move that widens the scope of a ballot already freighted with heavy financial consequences.
The counter-motion traces back to two funds represented by law firm Milbank LLP, which filed a supplementary request on Monday. Kronos responded with a statement calling the proposal unworkable, yet proceeded to expand the voting items regardless. That distinction matters for bondholders: placing a motion on the agenda is not the same as the issuer endorsing it, and Kronos's earlier rejection stands as a separate matter from the procedural addition.
Issuer Role vs. Guarantor Role
The proposal targets BayWa's legal position within the bond structure. BayWa currently serves as guarantor; the counter-motion concerns the issuer role specifically — a different legal capacity altogether. No transfer has taken place. For now, the shift remains a proposal awaiting a creditor decision rather than a completed step.
What has not changed is the economic substance of Kronos's original offer. Creditors would still be required to assign 98% of the nominal amount to a trustee without compensation, alongside all interest accrued up to the point the plan takes effect. Just 2% of the nominal value would remain with bondholders. The addition of the counter-motion should not be read as a retreat from those terms.
Should investors sell immediately? Or is it worth buying BayWa?
Two separate questions now sit before investors: who holds the issuer role, and what claims creditors retain. Untangling those threads is central to assessing what the arrangement means for BayWa as guarantor.
A Restructuring Framework Built on Sacrifice
The vote, scheduled for October 12 to 14, arrives against the backdrop of a far-reaching financial overhaul. Roughly two weeks ago, BayWa reached an agreement in principle on revised restructuring terms with 267 of 268 financing partners and both of its major shareholders. The plan calls for a sweeping reduction in debt capital, with hybrid bond creditors surrendering nearly the entire nominal volume and all accumulated interest claims without compensation — an effective total loss on their holdings.
Coordinating with banks and core shareholders buys the group breathing room, though the severity of the measures lays bare how deep the distress runs across the capital structure.
Operations Press Ahead Despite the Strain
Even as the balance-sheet overhaul grinds on, BayWa's management is pushing forward on the operational side. On October 1, subsidiary BayWa r.e. completed the sale of the Bavarian solar project "Gresselgrund" to iAccess Energy. The photovoltaic installation carries a rated capacity of 22 megawatts-peak. In parallel, the group teamed up with AGRAVIS Raiffeisen AG to modernize the agricultural machinery auction platform ab-auction, which counted roughly 35,000 registered users worldwide at the time of its relaunch.
Those steps signal that the company intends to keep existing partnerships and projects moving in its core agricultural and renewable energy segments, notwithstanding the broader turmoil.
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Reporting Delays Stretch Uncertainty Into 2027
The financial reorganization has also pushed back the reporting calendar considerably. Following two mandatory statutory disclosures, the annual financial report for 2025 is now slated for December 22. Publication of the subsequent half-year report is set for February 26, 2027.
That timetable prolongs the stretch during which market participants lack audited figures on earnings and indebtedness. Until certified numbers arrive, fundamental valuation carries substantial risk, and reliable balance sheets will not be available until the restructuring advances further.
Equity investors are already pricing in the persistent uncertainty. BayWa shares closed Friday at EUR 2.48, capping a 45% decline over the past twelve months. The Munich-based company's market capitalization now stands at EUR 241.30 million.
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