Grassi SA, a leading grain brokerage in Argentina, has potentially overcome the final obstacle in its acquisition of the troubled exporter Vicentin SAIC, which possesses a substantial share in the largest soybean crushing facility globally. Judge Fabián Lorenzini dismissed objections raised by a Louis Dreyfus Co venture concerning the agreement that Grassi reached with a majority of creditors holding US$1.3 billion in defaulted debt from Vicentin. If finalized, the restructuring may signify the conclusion of a six-year bankruptcy case that disrupted Argentina’s multibillion-dollar soy sector. The agreement was reached during a “cramdown” phase of the Chapter 11-style bankruptcy protection, allowing external bidders to participate – reportedly the inaugural bidding process of its kind in Argentine corporate history.
Grassi, a brokerage based in Rosario and headed by Chief Executive Officer Mariano Grassi has been given a limited timeframe to establish a timeline for executing its restructuring, as stated by the judge in a resolution issued on Thursday night. It is also undertaking measures to initiate the reorganization of Vicentin, which has managed to remain solvent through Chapter 11 due to tolling agreements at its facilities. Indeed, Louis Dreyfus and its local partner Molinos Agro SA, having participated as a joint venture in the cramdown, retain the right to appeal Judge Lorenzini’s decision to dismiss their objections, potentially prolonging the legal dispute.
Vicentin was managed by a family dynasty that confronted the power of global commodity trading houses to establish itself as Argentina’s leading exporter of soy meal and vegetable oil. That situation deteriorated in 2019 when it became vulnerable to one of the nation’s infamous currency runs. In a statement, Grassi indicated that Vicentin’s shares would be transferred immediately, asserting: “We take on this challenge with deep conviction, great enthusiasm, and complete confidence in our experience, in the capabilities of our people, and in all the valuable human resources that Vicentin still retains today.”
Grassi has engaged in discussions to involve Cargill Inc and Bunge Global SA as collaborators in the management of international trading operations. Bunge’s involvement will center on the Timbues soy processing facility, the largest globally, in which it holds a 67-percent ownership stake. Vicentin possesses the remaining 33 percent. “We are already collaborating with our commercial partners to secure trading channels and financing,” Grassi stated.