The Supreme Court of Justice of the Province of Santa Fe ruled against the approval of the Vicentin Preventive Agreement, which had been approved by the Civil, Commercial and Labor Appeals Chamber of Reconquista in March last year. In a divided resolution, the Court It made a resource of unconstitutionality filed by the firm Commodities SA, of the GRASSI Group, and He concluded that the payment proposal promoted by the agro -export company violated the principle of equality between creditors.
The ruling emphasizes that the agreement presented by Vicentin established an initial payment of US $30,000 for each survey larger debts. “The problem is that those who would obtain all of their credit immediately voted in the same category and imposed a solution to those who, in the best case, would receive 15% net in twelve years, ” The court argued.
The Court also questioned the criteria of the Chamber of Appeals, which had justified the approval of the agreement under the premise that it would avoid the bankruptcy of the company. “A binary logic of ‘homologation or bankruptcy’ cannot be accepted, omitting the possibility of opening the concurrence period (Cramdown), “said the magistrates.
With this resolution, The future of the company is suspended, which has been in preventive contest since February 2020. The reality is that from Vicentin they long warned that they had already exhausted their cash availability to finance daily operations and that they did not have sufficient resources for face an eventual “Cramdown”.
In any case, the decision of the highest provincial court also opens a question about the role they will take in this story Bunge and here that backed with their own funds Vicentin’s payment proposal to its creditors with the aim of keeping the assets of the agro -export. That plan would be complicated today.
In this context, the ruling highlights the lack of a clear business reorganization plan and the risk that Vicentin’s assets cannot be liquidated due to precautionary measures dictated in the criminal jurisdiction. In addition, he warns that the proposal approved by the Chamber did not guarantee equitable treatment between the creditors and left many in a situation of uncertainty about the collection of their credits.
The main creditor
Last year, the National Cima Investor Group announced the acquisition of the company’s debt with several international banks, which transforms it into the main creditor and a key actor in the judicial process that has been for several years. The operation, formally notified in court on December 17, It implied the purchase of credits for just over US $ 447 million. Among the financial institutions involved are the IFC (US $205.7 million), the FMO (US $ 122.3 million), ING (US $ 46.5 million), Rabobank (US $ 22.7 million), MUFG (US $ 12.4 million), SMBC (US $ 12.3 million) and Natixis (US $ 9.9 million). Market sources estimate that Cima paid approximately US $ 70 million for these credits, which represents 11 cents per dollar of debt.
In subsequent statements to the transaction, Cima expressed its intention to unlock the judicial process and work on a solution that allows the company to be reactivated that before its fall was the main agro -export of Argentine flag. “Our commitment is focused on guaranteeing the continuity of the company, preserving labor sources and contributing to the development of the sector,” said representatives of the investment group.
A not less data is that the Cima Group It was associated for this move with the grassi brokerled by the group of disagreeable creditors with the proposed payment plan.
From now on, with this new failure, The “Cramdown”, a mechanism contemplated in the Argentine legislation, would allow third parties to present an offer to compete with Vicentin’s original payment plan and take over the company’s operation. According to sector sources, in addition to ACA and Bunge, other business groups seek to keep the company, even the Grassi group. The end is still open.
Source: Ambito
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