Cerealists announce plan to rescue her / Argentina News

A group of collectors, cooperatives and agricultural producers that in 2020 formed the trust “Creditors Granarios de Vicentin” announced that they “promote and actively participate” in the process of “cram down” of the defaulted agro-exporter, this is a rescue through the control of third parties. .

“To accompany us on this path, and because we know that there is only one way to carry out a process that aligns the interests and possibilities of the participants in this contest, we have selected UBS Investment Bank (UBS) as a financial advisor, “they reported in a statement titled “Faced with Vicentin’s failure, agriculture proposes a solution for everyone”, which is signed by 64 agricultural companies.

Convinced that Vicentin is heading for bankruptcy and scrapping, and to defend the rights of creditors, this initiative that has among its promoters the Grassi group, the second commercial creditor of the oil company, assures that they developed “a virtuous business model, which allows to pay the granary creditors all of their credits, measured in the currency of the chain , and thereby build the engine for the continuity of the company and to obtain the necessary resources in a restructuring of liabilities “.

In addition to Grassi, the list includes, among others, Agricultores Ganaderos Villa Cañas SRL, Aguirre Vázquez SA, Agroinversiones Pampeanas SA, Bosetti Cereales SA, Cooperativa Agrícola Ganadera de Armstrong Limitada, Gagliardo Agricola Ganadera SA, GEAR SA, Granar, La Clementina and Moscoloni Hermanos.

UBS executives have already contacted him National Bank and with foreign banks, which are Vicentin’s main creditors, who received the management and initiative very well, sources close to the talks indicated.

UBS is a global leader in this type of complex negotiationsThey stood out in the trust, which gives “a very strong institutional validation to the initiative since it is a very selective bank when it comes to taking clients,” the sources indicated. In addition, their participation gives the proposal entity and that is why it has already been received by the group of foreign banks that are creditors of Vicentin.

Although the cereal group gathered in the escrow It has been meeting since the beginning of 2020, it now appears with the “cram down” proposal because the bankruptcy entered a decisive phase.

After Vicentin presented an offer to pay 30% of the debt in fifteen years, which generated the rejection of the creditors (with Banco Nación, the main one, at the head), even the judge who calls the call, Fabian Lorenzini, asked them to reformulate it.

The firm accepted it but asked it now to extend the exclusivity period to negotiate with the creditors (thus blocking the “cram down”) that ends on December 16, and in the next few hours the magistrate will have to make a decision.

If there is no creditor agreement, the “cram down” it is the only way to avoid bankruptcy.

But for the trust participants, the payment proposal has no way to prosper and they qualify it as “potentially fraudulent “, for which they activated the preparation of the process provided by law.

Faced with the “imminent bankruptcy” of Vicentin, cerealistas announce plan to rescue her

The full statement:

“The imminent bankruptcy of Vicentin, due to the unreasonable, abusive and potentially fraudulent proposal presented, violating the property rights of creditors – according to the expressions of Judge Fabián Lorenzini himself – impel us to advance in the necessary steps to promote an alternative solution in the framework of the contest.

Bankruptcy and / or scrapping or a payment plan such as the one proposed, are a blow to the heart of the agricultural chain, that is, hundreds of SMEs throughout the country, which will see their working capital undermined, built with much effort for decades.

Almost two years ago, a significant number of granary creditors have formed an open working group willing and committed to join and collaborate, as an agile and dynamic block, in projects that would pursue the continuity of the company and with it, the balanced safeguard of the interests of all affected parties “.