(Reuters) - German agricultural group BayWa has initiated restructuring proceedings at a court in Munich in an effort to circumvent a minority of creditors opposed to its plan, the company said on
Shares fall after Germany's BayWa seeks to push through restructuring in court
(Reuters) - German agricultural group BayWa has initiated restructuring proceedings at a court in Munich in an effort to circumvent a minority of creditors opposed to its plan, the company said on Friday.
Shares in BayWa slumped by as much as a third following the announcement, and were seen down 3.47% at 1021 GMT. Shareholders and BayWa's operating businesses will not be affected by the proceedings, the company said.
The proceedings initiated by BayWa make use of a legal framework that provides instruments for a restructuring while allowing a company to avoid insolvency proceedings. Implementation requires consent from 75% of creditors.
More that 95% of BayWa's creditors already approved its restructuring agreement in December, according to the company.
The Munich-based trader of farming supplies and produce has been grappling with rising borrowing costs, forcing it to embark on a major restructuring, including job cuts, after racking up a consolidated nine-month net loss of 640.8 million euros ($664.77 million).
BayWa said the presentation of the company's full-year results - expected on March 27 - would be delayed, and that its annual general meeting may also be postponed as a result of the proceedings.
($1 = 0.9639 euros)
(Reporting by Alexander Huebner in Munich, Writing by Tristan Veyet in Gdansk, Editing by Friederike Heine)
