In recent news, the Court of Appeals for Civil, Commercial and Labor Matters of Reconquista, Santa Fe, has approved a payment agreement with 1,600 creditors for Vicentin’s debt of 1,350 million dollars. This decision came after an appeal of unconstitutionality presented by Commodities SA was rejected. Vicentin, an agro-exporter, declared default in December 2019 and is now moving towards paying part of the debt with its creditors and avoiding bankruptcy.
The process to reach this agreement began four years ago amidst strong political debate. The government attempted to intervene and expropriate the company, leading to massive protests in various locations in the country. Despite these challenges and political pressures, the judicial negotiations continued under the framework of the Bankruptcy and Bankruptcy Law. One key moment in the process was in September 2023 when the first instance judge did not initially endorse the payment proposal. However, the Court of Appeals intervened and ultimately approved bankruptcy clearing the way for the agreed-upon payment plan with most creditors.
With approval now granted, Lorenzini will request lifting precautionary measures so that debt repayment can begin by Vicentin. The company has presented a 12-year payment plan through a trust structure aiming to return around 30% at dollarized values. Commodities SA claims a debt of over US$60 million and appealed against this agreement as unconstitutional but their appeal was rejected stating that arguments provided were insufficient to warrant a new ordinary review instance.
As implementation opens up half of creditors will collect their entire debts with an initial payment planned for each verifier which amounts $170 million followed by additional payments after 365 days and third estimated payment after 12 years. This progressive payment schedule aims to provide a fair resolution for all parties involved in Vicentin bankruptcy case
