The judge of the Santa Fe town of Reconquista, Fabián Lorenzini, extended the deadline for Vicentin to make a new proposal to his creditors, to whom you owe more than US $ 1,570 million. The magistrate established the March 31, 2022 as the deadline, when the company had actually asked for time until June 30.
Lorenzini argued that The workers’ representatives also proposed an extension, but with that date as a deadline, given that “if the milestones set out in the framework of the Technical Table, agreement with the investors and terms of the concordant proposals had not been met by then, it would not make sense to continue extending this insolvency period indefinitely.”
He also pointed out that from that sector they also raised “the need to address long-standing problems related to their working conditions, collective agreements and hygiene and health guidelines not complied with or partially observed ”.
On the other hand, it pointed out that the representatives of the Argentine Cooperatives Association (ACA), creditor and interested investor, together with the IFC and FMO international banks, they highlighted that “The proposed term and schedule was debated in the Technical Table, and its adoption in the proposed form was necessary.” Meanwhile he National Bank, another of the creditors, had actually asked that the February 28th be the deadline.
Lorenzini also clarified that on 31 March, “will examine the progress of construction of the concordat proposals and its dissemination among creditors for the purpose of considering, possibly, an extension of the deadline, only to have the conformities that allow approval of the proposal “.
Read also A group of 72 creditors wants to participate in the “rescue” of Vicentin
The judge further indicated that Vicentin will have to guarantee the continuity of its operations during 2022, anticipating any event “that could affect the normal development of its activity in advance, to avoid any situation that puts sources and jobs at risk, and the viability of the company.” Compliance with this aspect, he said, will continue to be a “primary obligation of the auditors and the Receivership.”
Lorenzini too asked to be drawn up,with a deadline until February 28, a scheme “of organization of the company”, taking into account different aspects, such as “the information about the consequences that would entail for employment, the concordant proposal, in particular in relation to possible dismissals, agreements on reduced working hours or similar measures that are intended to be adopted”.
There should also be included “the estimated financial flows of the debtor, any new financing planned as part of the restructuring plan and the reasons why it is necessary and reasonable to apply said plan.”
As well as a statement of reasons that explains “why the restructuring plan offers a reasonable perspective of avoiding insolvency and guaranteeing the viability of the company, together with the anticipated conditions, necessary for the success of the proposal”
Likewise, it requested a “detailed explanation of the exploitation and intended destination of the non-core assets.”
In your initial payment plan, which the judge rejection on November 23 for considering it “abusive”, The company proposed a 70% reduction of the capital in dollars and did not stipulate a precise date for the payment of the initial fee. In turn, it It stipulated a term of up to 15 years for those creditors who were owed more than US $ 20,000 of the initial payment.
Lorenzini had already granted an extension of the contest exclusivity period, from September 3 to December 16, within the framework of the arrival of 3 possible investors to the agro-exporter. Among them, Molinos Agro, Viterra and ACA, which would make a capital contribution of more than US $ 720 million to meet different commitments.
This trio of tentative investors has not yet reached a definitive understanding with the company and for now only has a preliminary agreement that is “non-binding,” as they recently told the magistrate.
In this framework, the Trust Creditors Granarios Vicentin (FAGV), which has more than 25% of a credit of over US $ 420 million, recently announced that it also intends to participate in the “bailout” of the firm.
It is group of 72 signatures seeks to carry out a process of “cramdown”, which allows creditors or other external actors to take over the company as a last possibility before bankruptcy. The financial agent to carry out this operation would be the UBS Investment Bank.
It is worth remembering that the cereal company entered into default in December 2019 and in February 2020 it was declared in bankruptcy of creditors. After twists and turns that included an attempt at nationalization by the Government, the company began to negotiate the transfer to other investors.