Los Grobo could not comply with a stock promissory note of US$100,000 and Agrofina missed a maturity of $400,000.
The Grobo Agropecuaria and its subsidiary Agrofinaboth members of the Los Grobo Groupinformed the National Securities Commission (CNV) of their inability to meet upcoming debt maturities, attributing this situation to the illiquidity of the market and adverse economic factors. In this way, both companies defaulted for more than $400,000 million.
In a notification dated December 27, Los Grobo Agropecuaria reported that it could not pay a stock promissory note of US$100,000 due on December 26. In addition, he anticipated that he will not be able to meet the maturities of stock market notes scheduled until March 31, 2025.. The company attributes this situation to the growing illiquidity in the securities market for issuers in the agricultural sector, difficulties in collecting certain loans and financial problems of a related company.
For its part, Agrofina, dedicated to the development, production and marketing of crop protection products, reported its inability to pay a stock promissory note of $400,000,000. Likewise, it reported that it will not be able to comply with the sixth interest payment service and the first capital amortization installment of the Class XII Negotiable Obligations, whose maturity was scheduled for December 30, 2024.. The company points out that the retraction in the sale of agroinputs, the fall in the phytosanitary market and the excess of stocks in the distribution channel have compromised its flow of funds.
Since the default was transcended, The company stated in a statement: “In the context of a market with a challenging contraction, we are experiencing a situation of temporary illiquidity which impacts the payment of stock market promissory notes issued for the companies that make up the Group. We are working to resolve a situation of temporary illiquidity and to this end, all alternatives are being analyzed to meet financial obligations. prioritizing our commitment to producers, suppliers, collaborators and customers. Our business is operationally healthy. “Our priority is to continue with commercial and production operations and business growth hand in hand with our network of supply of inputs, services and knowledge for the agricultural value chain, just as we have done for 40 years.”
The truth is that the default on the Los Grobo stock market notes, a situation similar to what another nationally owned agricultural firm, Surcos, is going through, highlights the role of the rating agencies. Just days ago, on December 20, she put the spotlight on the company but was cautious. By then, Fix lowered Grobo Agropecuaria’s Long-Term Issuer rating to BBB(arg) from BBB+(arg), and assigned Rating Watch Negative.
In that report he highlighted that “although to date the company has been canceling the high burden of current debt maturities concentrated between December 2024 and January 2025 (US$36 million), the total debt as of September 2024 amounted to US$83 million, considered high in relation to the company’s cash flow generation capacity. FIix estimates that the company will be able to meet the remaining debt maturities during the next quarter for US$23 million, although “Liquidity will be under pressure and will not exhibit ample financial flexibility, added to negative Flows Generated by Operations (FGO) of US$ 2.9 million during the first quarter of fiscal year 2025 and the postponement of the pending capital integration.” .
Source: Ambito
