- Fresh leadership takes over at Baywa
Rewritten Base Article:
Baywa's leadership landscape has undergone a shake-up following the company's financial rescue plan. Frank Hiller, a skilled engineer with a wealth of experience in industrial corporations, is set to take the reins as the new CEO. Meanwhile, Matthias Rapp, an accomplished manager with a background in automotive supplier Webasto, will assume the role of CFO. The Baywa Supervisory Board made this announcement.
The CEO chair has been vacant since the autumn, following Marcus Pöllinger's premature departure. The present CFO, Andreas Helber, will continue in his role until March, overseeing the preparation of the 2024 annual report.
Baywa, Germany's largest agricultural trader and with operations in renewable energy and construction, expanded its international footprint through acquisitions financed by credit over the past decade. Consequences of this bold move started to unfold last year, leaving the company with a substantial net loss of almost 641 million euros during the first nine months of 2024.
Rapp, the new CFO, acknowledged the challenges ahead, stating, "It won't be a walk in the park, but with resilience, transparency, and teamwork, we'll successfully navigate this transformation." The restructuring plan, which has been delayed until the end of 2028, aims to restore the company's financial health by selling off major holdings acquired during the past decade.
The plan, not devised by Hiller and Rapp, was unveiled in December. It involves slashing 1,300 of the 8,000 full-time positions at the Baywa AG headquarters, roughly 16% of the entire workforce in Germany.
Enrichment data highlights that the reshuffle of Baywa's leadership and restructuring are aimed at addressing the company's substantial debt issues, mainly stemming from its renewable energy subsidiary, BayWa r.e. The restructuring plan includes reducing BayWa AG's stake in BayWa r.e., capital increase, and financial measures to stabilize the subsidiary's financial footing, without impacting day-to-day operations.
The plan, involving the company's restructuring proceedings under the German Act on the Stabilization and Restructuring Framework (StaRUG), allows BayWa AG to manage dissenting creditors and execute the restructuring plan without consensus from all creditors, ensuring a smoother transition.
Hiller, as the newly appointed CEO, will implement Baywa's financial rescue plan, which includes the restructuring of the company to address its significant debt issues. The restructuring plan, scheduled for completion in 2028, involves Baywa selling off major holdings acquired over the past decade and reducing its stake in BayWa r.e., with the aim of restoring the company's financial health. Despite being a challenging task, Rapp, the new CFO, expressed confidence in Baywa's ability to navigate the transformation with resilience, transparency, and teamwork, having previously worked as a trader with a renowned company like baywa.