(Bloomberg) -- BayWa AG’s shares tumbled as much as 35% after the German agri business said that it commissioned a restructuring opinion due to a “strained financing situation.”
Dealers also cut the price of BayWa’s bonds. The company, which provides trading and logistics services in the agriculture, building and energy industries, in April pulled the sale of a new senior bond after orders fell short.
“Based on constructive talks with financing partners and the measures initiated, the Board of Management is convinced that the financial situation can be sustainably strengthened,” BayWa said in a statement late Friday.
BayWa has faced management changes and disputes in recent months. Earlier this year the company held an extraordinary meeting after a breakdown of trust between the board and CEO, according to German newspaper Frankfurter Allgemeine Zeitung.
The company’s supervisory board in January discussed a suspected compliance violation by Chief Executive Officer Marcus Poellinger and expressed confidence in him. Baywa said the matter was settled in March, after a report by law firm Schilling on suspected compliance violations found no breaches. The board in May elected Gregor Scheller as its new Chairman.
BayWa’s net debt-to-Ebitda ratio, a metric that indicates how burdensome its borrowings are, last year hit its highest level since 2019, based on data compiled by Bloomberg.
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