Argentina judge bars troubled crusher Vicentin from selling assets

A criminal judge in Argentina’s Rosario City has issued a ruling prohibiting the financially troubled crusher Vicentin from selling some of the assets from across the group’s several firms, local press reports have said.

Judge Nicolas Foppiani issued the ruling on behalf of the company’s creditors creditors amid fears that any asset sales would make it harder for investors to collect on their debts.

The move followed the recent sale by Vicentin of its meat packing plant Friar to dutch investment fund BAF, leading a group of Vicentin’s creditors to pursue legal steps that prevent the judge overseeing the company’s preventive bankruptcy process in San Lorenzo, Judge Fabian Lorenzini, to ban Vicentin from selling other companies.

However, a lack of response from the judge forced creditors to seek a precautionary measure at a Rosario criminal court.

The measure covers Vicentin’s shares in oilseed crusher Renova, a 50-50 joint venture that Vicentin and Switzerland-based international trader Glencore set up in 2006.

In December 2019, Vicentin sold one-third of its stake in Renova to Glencore Agriculture, increasing Glencore’s stake to 66.67% and giving it effective control of the business that produces soymeal, soyoil and biodiesel at its plants in San Lorenzo and Timbues.

Vicentin retains 33.33% ownership of Renova.

The ban ordered by the Rosario court also includes Oleaginosa San Lorenzo, Algodonera Avellaneda, Biogas Avellaneda, Buyanor, Terminal Puerto Rosario, Vicentin Desarrollos, La Porfia, Diferol, Emulgrain, Los Amores, Logística Río Arriba, Servicios Fluviales and The Branch.

Vicentin has faced huge financial troubles since December 2019, when the crusher defaulted on paying grain suppliers and brokerage firms as the company struggled to make debt repayments.

Vicentin currently owes approximately $350 million to grain suppliers, while the firm’s overall debt, including local and foreign banks, is estimated at $1.5 billion.

Last month, Argentina’s president, Alberto Fernandez confirmed his government had dropped plans to nationalise Vicentin after initiatives aimed at wresting control away from the family-owned crusher were checked by Judge Lorenzini, who is charged with overseeing the case.

On June 9, Fernandez issued decree 522/20 through which it announced a 60-day intervention period as part of a plan to nationalize Vicentin in a move to “rescue” the firm and avoid it falling into the hands of foreign companies.