This is the Entre Ríos firm Campo de Avanzada. In September it entered bankruptcy and now warned that it could not pay the last maturity of its ON for $7.5 million.
In a context of growing economic uncertainty for the agricultural sector, Campo de Avanzada SA joins the list of companies that have fallen into default, affecting their creditors and investors. The firm joins giants in the sector such as Los Grobo, Agrofina and Surcos, who also face financial difficulties derived from the fall in international commodity prices, the drought and other unforeseen factors that hit the industry hard. This situation highlights the vulnerability of many agricultural companies, whose difficulties in meeting their financial obligations extend beyond large companies and even reach small and medium-sized firms, as is the case of Campo de Avanzada.
More specifically, The agricultural firm Campo de Avanzada recently requested bankruptcy proceedings before the Court of First Instance of Córdoba. This process, formally initiated on September 10, 2024, is framed in a context of crisis that the company attributes to adverse weather conditions and pests such as the leafhopper that seriously affected its production in recent campaigns.
The contest was framed as “small”, given that the company has less than 20 workers. In addition, the court ordered precautionary measures to protect its banking operations, such as the suspension of the disqualification to issue checks linked to the debt prior to the request for the process.
Campo de Avanzada is an agricultural SME like many others that turned to the capital market in search of financing in a context in which it was convenient to issue debt.. Its base of operations is in the province of Entre Ríos and is mainly dedicated to the production of soybeans, corn and wheat in leased fields. According to the prospectus sent to the Stock Exchange, since 2021 it began to venture into livestock farming and is also dedicated to transporting grain for third parties.
In this framework, uOne of the most visible effects of Campo de Avanzada’s financial deterioration is the impact on the holders of its SME Series I Negotiable Obligations (ON), guaranteed by Garantizar SGR. According to the issuance prospectus approved by the National Securities Commission (CNV) in January 2022, the firm had to pay the sixth interest and capital service, with a total amount of $7.57 million, scheduled for January 21 of this year. anus. The truth is that given this scenario, the firm warned this week that it would default on the corresponding payment and thus became the fourth agricultural company to default on the stock market.
The substantial difference of the Campo de Avanzada ON Pyme is that it is supported by The Reciprocal Guarantee Company Garantizar, who as soon as the firm communicated that it could not meet the due payment, reported that it would execute the corresponding payment in its role as guarantor, ensuring 100% collection for the holders of the securities.
Source: Ambito
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