Argentina Court Ruling Delays Bunge's Takeover of Bankrupt Soy Firm Vicentin
Source: DairyNews.today
An Argentine court has dealt a significant blow to the takeover plans of bankrupt soy processing giant Vicentin by ruling that the company's existing debt agreement with creditors is unconstitutional.
This decision, handed down by the Supreme Court of Santa Fe province where Vicentin is based, forces the company to renegotiate terms with its creditors, complicating a proposed acquisition by U.S. grains trader Bunge, Glencore-backed Viterra, and Argentine cooperative ACA.
The ruling, issued in response to a complaint by a hostile creditor, poses a major setback for the takeover bid, which involves key players in the global agribusiness sector. Bunge and Viterra, which recently announced a major merger deal, had been moving forward with plans to acquire Vicentin as part of a broader strategy to expand their foothold in Argentina’s lucrative soymeal and oil export market.
Vicentin, once Argentina's largest soy oil and meal exporter, defaulted on over $1 billion in debt in 2019, leaving the company embroiled in an extended legal battle. It owes money to both the Argentine state and international creditors, further complicating efforts to restructure and finalize any takeover deal.
The ruling, disclosed to Reuters on Wednesday, underscores the legal and financial challenges surrounding Vicentin's recovery. Neither Vicentin nor Bunge responded to requests for comment on the court’s decision.
Argentina is a key global player in the soymeal and oil market, and Vicentin was a cornerstone of this industry before its financial collapse. In 2020, the Argentine government briefly considered nationalizing the company but abandoned the plan after strong opposition from the business community.
The ruling, issued in response to a complaint by a hostile creditor, poses a major setback for the takeover bid, which involves key players in the global agribusiness sector. Bunge and Viterra, which recently announced a major merger deal, had been moving forward with plans to acquire Vicentin as part of a broader strategy to expand their foothold in Argentina’s lucrative soymeal and oil export market.
Vicentin, once Argentina's largest soy oil and meal exporter, defaulted on over $1 billion in debt in 2019, leaving the company embroiled in an extended legal battle. It owes money to both the Argentine state and international creditors, further complicating efforts to restructure and finalize any takeover deal.
The ruling, disclosed to Reuters on Wednesday, underscores the legal and financial challenges surrounding Vicentin's recovery. Neither Vicentin nor Bunge responded to requests for comment on the court’s decision.
Argentina is a key global player in the soymeal and oil market, and Vicentin was a cornerstone of this industry before its financial collapse. In 2020, the Argentine government briefly considered nationalizing the company but abandoned the plan after strong opposition from the business community.
