Claim against Vicentin rejected by justice, creditors’ civil-commercial claim closed

The Court of Appeals for Civil, Commercial and Labor Matters of Reconquista, Santa Fe, has finalized the approval of Vicentin’s payment agreement with 1,600 creditors for a debt of 1,350 million dollars. This agreement comes after the agro-exporter declared default in December 2019 and underwent a rigorous judicial process to avoid bankruptcy. The agreement involves transferring 95% of the shares to three strategic investors – Viterra, Bunge, and the Association of Argentine Cooperatives (ACA) – who would contribute $462 million to control the family business.

The political debate surrounding Vicentin reached its peak in June, four years after the company faced intervention and expropriation attempts by Alberto Fernández’s government. Despite strong political pressures, negotiations within the framework of the Bankruptcy and Bankruptcy Law continued. In September 2023, a key legal decision allowed for a “cramdown” process, enabling superior payment offers to creditors. However, the Court of Appeals suspended this process to implement the approved agreement with the majority of creditors, as per insolvency and bankruptcy regulations.

The approval of the bankruptcy in March was followed by the denial of the appeal of unconstitutionality by the Court of Appeals in the recent ruling. Vicentin presented a 12-year payment plan through a trust structure, aiming to repay around 30% of its debts at dollarized values. Commodities SA contested the agreement, citing unconstitutionality, which the Court of Appeals rejected based on legal grounds.

With the agreement now in place, the company is preparing to begin repaying its debt. The payment plan involves an initial payout of $30,000 to each creditor, with subsequent payments based on a pro rata distribution to all verified and admitted creditors. The plan aims to ensure that half of the creditors receive their entire debt back, with additional payments to follow in the next 12 years. This agreement paves the way for Vicentin to settle its debts and move forward with its operations.