Gerresheimer's Debt Deal Buys Time, But Accounting Scandal Looms Large

Gerresheimer wins 96% bondholder approval to extend financial deadlines to 2026, sparking an 18% stock surge, as it tackles a major IFRS accounting scandal and BaFin investigation.

A decisive 96% of Gerresheimer's bondholders have approved a crucial extension, pushing the deadline for the company's audited 2025 financial statements to the end of September 2026. The immediate market reaction was a powerful 18% surge in the share price, lifting it back above the EUR 20 mark in April for the first time in months. This reprieve, covering a total debt volume of EUR 870 million and supported by banking partners under standard conditions, suspends key financial covenants related to leverage until the third quarter of 2026.

This financial breathing room is urgently needed as the Düsseldorf-based packaging specialist grapples with a deepening accounting crisis. The core issue involves the improper booking of approximately EUR 35 million in revenue and EUR 24 million in adjusted EBITDA through so-called "bill-and-hold" agreements for goods that had not yet been shipped, a clear violation of IFRS rules. Germany's financial regulator, BaFin, has launched an investigation, specifically scrutinizing lease liabilities valued at EUR 65.5 million, capitalized development costs of EUR 29.4 million, and assets in the Advanced Technologies segment worth EUR 196.5 million for potential impairment recognition failures.

The scandal has triggered a cascade of operational disruptions. A second audit firm, Grant Thornton, has been brought in to examine business transactions from 2024 and 2025 alongside the incumbent auditor KPMG, significantly delaying the annual report. Consequently, Gerresheimer faces an imminent expulsion from the SDAX index, originally scheduled for April 10, which forced index-tracking ETFs to sell shares. The company's annual general meeting, initially set for June 3, has been cancelled with no new date announced.

Management is targeting a much earlier publication of the 2025 accounts in June 2026, well ahead of the September deadline agreed with creditors. Should this be achieved, the half-year report due on July 14 would serve as the first true indicator of whether the stabilization plan is taking hold. For now, the company states that business development in 2026 is meeting expectations with a solid order book.

To shore up its balance sheet, Gerresheimer is pursuing a dual strategy of divestment and restructuring. The sale process for its US subsidiary Centor Inc., a plastic medical vial specialist acquired a decade ago for USD 725 million, is underway with a double-digit number of interested parties. Investment bank Morgan Stanley is marketing the unit, which is valued at EUR 292 million, with a transaction expected to close later this year. Simultaneously, the company plans to shutter its Chicago Heights plant by the end of 2026.

The fallout extends beyond Gerresheimer's own books. The auditor oversight body APAS has initiated professional misconduct proceedings against KPMG. The allegation is that KPMG issued an unqualified audit opinion for the 2024 financial statements despite the problematic booking practices. While the recent debt agreement has provided a temporary lift, with shares gaining nearly 20% over the past 30 days, the road to full recovery is long. The stock, trading around EUR 21, remains nearly 68% below its 52-week high of EUR 64.40.