A Brazilian bankruptcy judge has pushed back the sale of two soy crushing plants after U.S-based grain trader Bunge Ltd alleged the seller provided insufficient information about the assets, according to court filings seen by Reuters on Friday. The auction of the two plants by privately owned Imcopa group, rescheduled to Feb. 17 from Dec. 4, is part of the seller’s plan to emerge from bankruptcy. Imcopa and a court-appointed judicial administrator agreed to cancel this week’s auction of the two strategic plants in Paraná state, court documents showed.
Argentine soy crushing giant Vicentin is struggling to repay over $350 million in debt and some plants are likely to halt production while it seeks relief amid an economic slowdown in the country, a source close to the firm said on Thursday, Reuters reported. The grains crusher, Argentina’s top exporter of processed soy last year according to government data, said it had been hurt by increasing financing costs and rising country risk, and was looking at how to meet its obligations.
Bondholders are gearing up for a nasty fight as Argentina’s largest province stares down a debt payment it may not be able to make, Bloomberg News reported. The Province of Buenos Aires will owe investors $571 million in January, and is unlikely to be able to come up with the cash amid a sharp devaluation in the currency and severe economic recession. The region has few dollar-generating industries, and tax revenue has dropped 14% in inflation-adjusted terms this year. Refinancing isn’t a realistic option amid plans by the federal government to restructure its debt.
Creditors for Brazilian conglomerate Odebrecht SA decided on Wednesday to postpone a vote on the company’s bankruptcy restructuring proposal to Dec. 10, until after it submits a revised restructuring plan, Reuters reported. Reuters reported earlier this week that Odebrecht and its larger creditors, local lenders, are close to reaching an agreement on a revised plan. Odebrecht lawyer Eduardo Munhoz said he expects to deliver the revised plan before Dec. 10.
Argentine President-elect Alberto Fernandez said on Thursday he did not want to fall short on debt obligations even as his government puts a premium on growth. Fernandez, who takes office on Dec. 10, will need to negotiate with creditors including the International Monetary Fund as Argentina buckles under the weight of about $100 billion in sovereign debt, KFGO reported. "I do not want to give haircuts to anybody, I do not want to stop paying what we owe," Fernandez said while speaking at an Argentine industrial chamber event in Buenos Aires.