The CIMA group, which has the Grassi brokerage as a partner, became the main creditor of the agro-exporter. New cramdown order flies over.
The story seems to have no end. Once again the signature Vicentin agro-exporter, which went into default in December 2019 and faces a complex bankruptcyran into a rock on the road. This week, the national investment group CIMA announced the acquisition of the company’s debt with several international banks, which makes it the main creditor and a key actor in the judicial process that has been going on for several years.
The operation, completed on November 12 and formally notified in court on December 17, It involved the purchase of credits for just over US$447 million. Among the financial entities 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 debts, which represents 11 cents for every dollar of debt.
In statements following the transaction, CIMA expressed its intention to unblock the judicial process and work on a solution that would allow the company to be reactivated, which before its fall was the main Argentine flag exporter. “Our commitment is focused on guaranteeing the continuity of the company, preserving employment sources and contributing to the development of the sector,” expressed representatives of the investment group.
A no less important fact is that the CIMA group He partnered for this move with the runner Grassiwhich leads the group of dissatisfied with the proposed payment plan endorsed by a double majority. Furthermore, the study Casanova, Mattos & Salvatierra Abogados was the advisor and in charge of putting together the strategy.
From Vicentin, the board assured that the acquisition of the debt by CIMA does not change its strategy to end the preventive bankruptcy. “We remain focused on reaching a resolution that allows us to stabilize the company and guarantee its operational continuity,” they indicated. However, they warned that the delay in judicial decisions significantly affects their financial capacity. The company reported that it has already exhausted its cash availability to finance daily operations and does not have sufficient resources to face a possible “cramdown.”
The “cramdown”, a mechanism contemplated in Argentine legislation, would allow third parties to present an offer to compete with Vicentin’s original payment plan and take over the company’s operations.. This process is under analysis by the Supreme Court of Justice of Santa Fe, which must decide whether to approve the plan presented by the agro-exporter or give rise to this alternative.
Either way, This strategic move by CIMA reconfigures the scenario of the preventive contest, generating uncertainty and expectation among the different actors involved. The Supreme Court’s resolution will be decisive in defining the future of Vicentin, which is going through a critical moment both judicially and financially.
Source: Ambito
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