The company’s payment plan “would imply the scrapping of the company and the loss of jobs,” said the president of the BNA, Eduardo Hecker
Banco Nación (BNA) rejected as “unacceptable” the new payment proposal prepared by the agro-export company Vicentin in its contest with creditors for US$1,500 million and pointed out that the offer “does not represent a good way to avoid bankruptcy” of the Santa Fe company.
“Is a unacceptable proposal since it would imply the scrapping of the company and the loss of jobs,” said the president of the BNA, Eduardo Hecker.
The official said that, in the face of a potential lack of agreement, “the Cram Down could be a path and the credits granted by the BNA could be part of a participation of the national State” in the company.
Through a statement, Hecker pointed out that “for the BNA (the main individual creditor of the Vicentin contest, for US$300 million) it is not acceptable either as an unsecured creditor or as a privileged creditor.”
He explained that “it is nonsense to make a proposal only on ‘the North Node or a group of companies, since the credit was allocated to the whole of Vicentin”, and considered that “this is a fundamental point” of the rejection.
“It is an unacceptable proposal since it would imply the scrapping of the company and the loss of jobs,” Hecker said.
Response to transcended
Although the company did not make a formal presentation before the civil and commercial court of the city of Santa Fe Reconquest, in which it processes its preventive contest, the position of Banco Nación came out to respond to the reports that circulated from Vicentin with its proposal to creditors.
The previous initiative – which involved a removal of 70% of the debt and payment in 15 years – had been rejected and the bankruptcy judge, Fabián Loerenzini, considered it “abusive” for which he asked the company to formulate a new proposal “in a reasonable way”.
Vicentin’s new proposal contemplates an initial payment to creditors -originally it was only for credits of up to US$20,000- in two installments during this year and the next and the capitalization of the rest of the debt by shares of the company, of whose package the current partners would maintain 10%.
At the same time, the agro-export company proposes the sale of its shareholding in Renova, where it retains part of its partnership with Vinterra (former Glencore group).
Banco Nación rejected Vicentin’s new payment proposal as “unacceptable”
According to reports, the transfer of shares for debt could be carried out through a escrow in which the creditors would participate, among them those presented as “strategic stakeholders” in the continuity of the company.
It’s about the same Vinterra (a partner of Vicentin in the Renova plant), Molinos Agro (Grupo Pérez Companc) and the Association of Argentine Cooperatives (ACA), which have a preliminary agreement with Vicentin.
In addition, the current board of directors would cede the management of the company to leave it in the hands of a group of executives proposed by the creditors, while reserving the possibility of repurchasing the shares within a period of 15 years, a period in which it would work with fasón contracts to keep its own grain processing plants operational.
The BNA advanced, through the president of the board, its rejection of the new payment offer.
“The National Bank You have the possibility to exercise the right to file for bankruptcy. And the new proposal does not represent a good way to avoid that option,” the entity said in a statement.
He added that “the situation affects the rights of Banco Nación and all Argentines” and that “as a country we need a sector that process grains, export them and add value”.
Along these lines, the entity stressed that “fasón cannot be produced for 15 years with a scrapped company and that is not a production alternative for Santa Fe.”
Rather, he noted that “Argentina needs a more comprehensive production process to be put in place”.
At the same time, the institution led by Hecker maintained that “the same ones who carried out a fraud and kept a huge amount of money, are seeing how they continue with this process. We are not going to accept it.”
After the last extension granted by the Judge Lorenzini, Vicentin has until March 31 to reach an agreement with his creditors and avoid the bankruptcy of the company, which until its declaration of “financial stress” in December 2019 was the main agro-exporter of national capital.
Banco Nación highlighted in its statement rejecting the proposal that “the Cram Down (rescue) could be a way” to give continuity to the signature, “and the credits granted by the BNA could be part of a participation of the National State” in that way.