BayWa Renewable Energy Subsidiary Hires AO Shearman, PJT Partners; Lenders Working With Teneo, Noerr

Renewable energy company BayWa r.e. is working with law firm AO Shearman and financial advisor PJT Partners amid a financial restructuring at its parent company, the distressed German agriculture services provider BayWa AG. A steering committee of BayWa r.e.’s lenders hired financial advisor Teneo and legal advisor Noerr, while BCG has been mandated to provide an IDW S6 restructuring opinion, sources told Reorg.

BayWa r.e. is a joint venture between BayWa AG and Zurich-based investment firm Energy Infrastructure Partners. BayWa AG holds a majority stake in the venture, sources said. The renewable energy firm operates in 34 countries and has an annual revenue of nearly €5.8 billion, according to its website.

BayWa AG in August entered into standstill agreements with its main lending banks and secured a bridge financing agreement of €272 million with a core group of banks, as reported. These arrangements, combined with other liquidity measures, provided the company with €547 million in additional liquidity. The agreements are set to remain in effect until Sept. 30, with a potential extension to Dec. 31.

The standstill could be extended to December, several sources said. BayWa AG will need to make disposals, which will likely be made at the r.e. level, one source added. The company was exploring the sale of its solar trading business, which is part of BayWa r.e., in 2023, and at the time reportedly hoped for proceeds of over €2 billion from the sale.

BayWa AG has retained Rothschild as financial advisor and Jones Day as legal advisor. Gleiss Lutz is advising management, Alix Partners provided a chief restructuring officer while Roland Berger is also producing an IDW S6 restructuring opinion. A steerco of BayWa AG’s lenders are working with law firm Wilkie Farr, while the company’s €834.5 million Schuldschein lenders retained Dentons, as reported.

BayWa’s capital structure as of Dec. 31, 2023: