Bunge joined the investment group for Vicentin’s rescue

The agro-exporter bungee join the group strategic stakeholders for Vicentin’s rescue and continuationin the middle stage of the definition of judicial contest processed in the court of the Reconquista, which governs Judge Fabian Lorenzinifor the company’s rescue in default for US $ 1,350 million.

Bunge is a company recognized worldwidewith deep national root and will join Association of Argentine Cooperatives (ACA) at Viterra Argentina SA who has been working in recent months in a coordinated manner with Vicentin on the bankruptcy proposal, which this week reached the most personal compliance required by law: 811 guarantees, involving half and one in 1,620 lenders.

The new member of the consortium of strategic stakeholders replaced Molinos Agro, of the Pérez Companc groupthat the board of directors decided to withdraw at the end of March, due to difficulties of the “national and international context”.

In the grain market, the possible incorporation of Bunge and its adoption was discussed favors confidence about the possibilities of building a “new Vicentin”that when the financial problems are overcome, it will regain its leading role as a leading actor in the national agribusiness.

A process of high political impact

Until it became the default, Vicentin It is the agro-industrial capital company of Argentina with the highest level of exports, which focuses on soy flour, grains and oil. He announced “financial stress” on December 4, 2019 and in February 2020 he summoned his creditors.

In June of that year, he was interfered by the national government, which was later revoked by an order revoking the former. In the midst of this process of high economic and political tension, which includes massive mobilization in various cities of the country, In August 2020, Vicentin CEO Sergio Nardelli died of a heart attack..

The new partner strengthens the search for financial compliance

From Vicentin’s board of directors, they considered that Bunge’s entry “proves that the actions taken so far in the desire to reach a solution that greatly alleviates the situation of all lenders are correct and consistent with a sustainable project that will allow to maintain the operation of the company and its sources of employment“.

They thought that “this progress has been achieved in an extremely complex and challenging national and international contextwhich cannot be ignored and adds more value to the efforts of all those who have dedicated themselves to be part of a solution approaching crystallization ”.

And they ensured that they would continue to consolidate the search for compatibility in the financial sector. The second requirement of the contest indicates reaching 66.66% acceptance of the proposal in relation to the capital owed.where banks that have verified credits for 66.94% of Vicentin’s total debt will be determined.

In all, from the company founded in Avellaneda, Santa Fe, in 1929, they are optimistic regarding that “the necessary approvals can be obtained to fulfill the second majority required in the bankruptcy process”.

How to plan repayment to lenders

In this context, it remains bankruptcy proposal to repay the debt, prepared by Vicentin and its strategic stakeholders. indicates ppast in dollars, up to US $ 30,000 for each of the lenders, which will pay the debts of 791 producers, stockpiles and cooperatives. Meanwhile, this indicates a significant reduction for lenders of larger amounts. In this group, international banks will be decisive, continuing to negotiate the proposal to move towards final acceptance.

there is Vincentin maintained the operation of agro-industrial plants while the future of the company was resolved.

After a complicated month -long process, Vicentin’s shareholders proposed to give up 95% of the company and find “guarantee the continuity of operation of the company and its workers“.

In this sense, they consider that the repayment proposal “greatly simplifies impact that the company’s financial crisis has generated on so many small and medium agricultural producers that they will see the collection of their debts effectively resolved ”.