The National Securities Commission (CNV) decided this Monday to file a criminal complaint against the company Surcos SA, supplier of inputs for the agricultural sector, after he defaulted on his short-term debts. Five days ago, the agency had ordered the suspension of negotiable securities issued by the company. The latest financial movements of Surcos aroused the suspicions.
At the beginning of November, the phytosanitary company issued negotiable obligations (ON) in foreign currency class A and B for a total of US$16.67 million, and ON class C for $3,078 million. But, Just a few weeks later, it began a series of non-compliance with previously assumed commitments.
First, he announced that he would not pay the maturity of a stock market promissory note for US$500,000 scheduled for November 28; a week later, failed to comply with a payment for US$3.5 million and another for $9,364 million; and finally, on December 10, Surcos reported as a “relevant fact” that it is in “a process of evaluating the future business plan” regarding the ONs issued for a total of US$50 million and $6,517 million, the next maturity of which is on December 30.
These movements raised alarm bells about the possibility that there may have been some type of behavior bordering on fraud during the latest ON placements: basically, a company that one day issues debt in pesos and dollars for considerable amounts cannot a few days later fail to meet their prior financial commitments.
The complaint
Specifically, The complaint was entrusted by a resolution of the CNV signed by its president, Roberto Silva; the vice president, Patricia Boedo; and the director Sonia Salvatierra.
The resolution orders “to file a criminal complaint against Surcos SA, for the alleged commission of the crime defined in article 309, section 1), subsection b) of the Penal Code of the Argentine Nation.”
What does the aforementioned point of the Penal Code say? It establishes that he will be “punished with imprisonment of one (1) to four (4) years, a fine equivalent to the amount of the operation and disqualification of up to five (5) years.” who “offers negotiable securities or financial instruments, disguising or hiding true facts or circumstances or affirming or suggesting false facts or circumstances”.
In other words, the company is suspected of hiding or falsifying information about its financial situation at the time of issuing negotiable obligations at the beginning of November, given that a few days later it began to default on its liabilities.
Downgrade
In the recitals, the resolution indicates that File No. 426/2024, entitled “Surcos SA (Former Red Surcos SA) without investigation”, is initiated as a result of the situation report of Surcos SA, “prepared on the occasion of what was reported by the competent areas of the organization in relation to the Relevant Facts published in the Financial Information Highway linked to the inability of SURCOS SA to face the payment of a promissory note with expiration on November 28 of the current year and the downgrade imposed by Fix SCR SA on said company.”
It happens that Fix, an affiliated risk rating agency of Fitch Ratings, lowered the rating granted to Surcos of long and short-term issuer of the Company from CC (arg) to C and maintained the negative Rating Watch. Fix’s report highlighted that in the last three months the company evidenced and reported a significant deterioration in sales and greater working capital needs that produced a significant imbalance between the expected flow and commitments for the next six months.
Likewise, another of the recitals of the CNV resolution states that “previously, Surcos SA had issued Negotiable Obligations Series XIV, Classes A, B and C; without disseminating information that would allow us to know about their real financial situation.”
“Consequently, the reference file was formed, determining that “There were reasonable grounds to file a criminal complaint,” the agency added..
The company, for its part, assured that “it is taking all necessary measures to achieve reversal as soon as possible and efficiently and effectively the situation of illiquidity that it is going through”.
And he added: “We are in a process of general evaluation of the rest of the instruments issued in search of a comprehensive solution that allows us to ensure the normal functioning of the company, prioritizing personnel, commercial and production operations to fulfill deliveries. agreed.”
Source: Ambito
