Restructuring in the agricultural sector: continuing the farm, preserving substance
Farms tie up a great deal of capital in land, barns and machinery, and earn revenues that they can barely influence themselves. Producer prices follow the world market and the weather, while the costs for land leases, energy, feed and wages rise. In addition there are requirements in animal husbandry and environmental law that demand investment before it pays off.
When a farm gets into a crisis, this often becomes apparent late. Liquidity depends on the harvest year, loans are secured on land and buildings, and lease agreements bind for years. Those who act early have more options open, from reorganising the financing to restructuring proceedings in Eigenverwaltung (debtor-in-possession management under Sections 270 et seq. of the German Insolvency Code).
The Worstbrock-Group supports farms and agricultural companies in crisis, in restructuring proceedings and in realignment. The aim is to continue the farm, preserve jobs and create a foundation that can also withstand a weak harvest year.
Immediate help and crisis management
- Analysis of liquidity, revenues and costs per production branch
- Liquidity planning across the financial year, including harvest, subsidy and payment dates
- Talks with banks, landlords, agricultural merchants and buyers
- Review of the duty to file for insolvency and preparation of an application for Eigenverwaltung
Restructuring and Eigenverwaltung
- Restructuring concept in accordance with IDW S 6 (the German standard for restructuring concepts issued by the Institute of Public Auditors) for banks and creditors
- Restructuring proceedings in Eigenverwaltung with the farm in operation
- Reorganisation of lease, supply and purchase agreements
- Valuation of the production branches and concentration on the viable ones
Strategic realignment
- Restructuring under StaRUG (the German Act on the Stabilisation and Restructuring Framework for Businesses, in force since 2021) when illiquidity is imminent
- Integrated financial planning with assumptions on prices, yields and costs
- Support with the handover of the farm, business succession or sale of parts of the business
- Valuation of investments, for example in barn construction, energy generation or direct marketing
A farm has often grown over generations, and family and farm are closely linked. We combine commercial clarity with an eye for the particularities of the sector and guide the farm through the crisis, in confidence and with a sense of what is achievable.
Act while another weak harvest year has not yet decided the fate of your farm.
We support farms in stabilisation, restructuring and realignment.
