Gerresheimer’s Creditor Truce Masks a Deeper Accounting Crisis

Gerresheimer secures creditor breathing room but faces widening accounting probe, asset writedowns, and shareholder legal action.

The German medical packaging group Gerresheimer has bought itself breathing room from its lenders, but the underlying accounting scandal continues to tighten its grip. Shares closed at €22.76 on Friday, a 46% rebound from the February trough, yet the stock has still shed nearly 58% over the past twelve months. The market capitalisation has shrunk to roughly €730 million.

Creditors Grant a Stay of Execution

The fragile recovery was underpinned by a mid-April agreement with Schuldschein holders. A 96% majority of creditors approved an extension of maturities until 30 September 2026, covering the full €870 million in outstanding notes. Gerresheimer also secured a waiver on key leverage covenants through the end of the third quarter.

The reprieve is real but conditional. The company must now deliver on a series of operational and financial milestones to avoid a renewed crisis of confidence.

Centor Sale: The Liquidity Lifeline

The most immediate priority is the disposal of US subsidiary Centor Inc. Morgan Stanley is running the auction, which has attracted a double-digit number of bidders. Centor was carried on the books at €292 million at the end of 2024. Gerresheimer aims to complete the sale before year-end, with proceeds earmarked to slash the group’s debt burden.

The divestiture is not the only balance sheet headache. The company expects non-cash impairment charges of €220 million to €240 million for 2025, driven largely by writedowns at Sensile Medical and the planned closure of the Chicago Heights glass plant, which will shutter by the end of fiscal 2026.

The Accounting Scandal Widens

At the heart of the crisis are so-called bill-and-hold transactions. Gerresheimer invoiced customers for goods but deferred delivery, booking revenue prematurely in violation of IFRS rules. A law firm’s investigation confirmed systematic irregularities totalling €35 million in revenue and €24 million in operating profit.

The fallout is now spreading to the auditors. Germany’s audit oversight body, APAS, has opened proceedings against KPMG, which had signed off on the 2024 annual accounts with an unqualified opinion despite the errors. KPMG had only recently taken over the mandate. Grant Thornton has since been brought in to re-examine the 2024 and 2025 financial statements.

BaFin’s Parallel Probe

The financial regulator BaFin has been investigating Gerresheimer since September 2025 and has since widened its scope. The probe now covers incorrectly reported lease liabilities with a book value of €65.5 million, as well as flawed disclosures on capitalised development costs. The full materiality of these issues will only become clear once audited accounts are published.

Legal Pressure Mounts

Shareholder protection group DSW is preparing legal action. A commissioned expert opinion is examining potential damages claims against former CEO Dietmar Siemssen and former CFO Bernd Metzner, as well as against the supervisory board. The case also involves questionable goodwill and other intangible assets totalling roughly €676 million.

Reporting Paralysis

The company’s financial reporting remains in limbo. Gerresheimer was ejected from the SDAX in mid-April due to the absence of audited accounts. The annual general meeting and the first-quarter report have been postponed indefinitely. The group now targets June 2026 for the publication of a certified 2025 annual report, with a half-year update planned for 14 July 2026.

Until reliable numbers are available, no new takeover talks can proceed. A non-binding offer from US rival Silgan Holdings at €41 per share was rejected in March, with management insisting it must first fix the accounting mess.

Operating Guidance Holds — For Now

Despite the turmoil, the underlying business is holding up. Gerresheimer has reaffirmed its 2026 guidance: revenue of €2.3 billion to €2.4 billion, an adjusted EBITDA margin of 18% to 19%, and moderately positive free cash flow. Current trading is said to be in line with expectations.

The real test comes in June. Only a clean set of audited accounts will reveal whether the creditor truce was a genuine lifeline or merely a pause before a deeper reckoning.