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Something to watch over the next few months.
Argentine agricultural giant Los Grobo Agropecuaria and its subsidiary Agrofina have defaulted on significant debt obligations, signaling potential turmoil in Argentina's crucial agricultural sector.Los Grobo Agropecuaria, one of Argentina's leading soybean and wheat producers with an annual turnover of approximately $800 million USD, has informed the National Securities Commission (CNV) of its inability to meet debt payments. The company defaulted on:
-A $100,000 short-term debt instrument due on December 26, 2024
-Upcoming debt scheduled to mature on March 31, 2025
Agrofina, focused on crop protection products, has also defaulted on:
-AR$400 billion (about $400 million) in debt
-The sixth interest installment and first capital amortization of its Negotiable Obligations Class XII, due December 30, 2024
Reasons for Default
The companies cited several factors contributing to their financial distress:
-Lack of market liquidity in the stock exchange debt market for the agricultural sector
-Difficulties in collecting payments on certain credit lines
-Financial problems of an associated enterprise
-Declining sales of agricultural products
-Contracting phytosanitary market
-Excess inventory in distribution channels
Los Grobo Group released a statement acknowledging the temporary liquidity crisis while emphasizing its operational health.
They stated:
-They are working to resolve the situation and analyzing alternatives
-Priority is given to commitments to producers, suppliers, collaborators, and clients
-Focus remains on continuing commercial and productive operations
More details here:
Argentine agricultural giant Los Grobo Agropecuaria and its subsidiary Agrofina have defaulted on significant debt obligations, signaling potential turmoil in Argentina's crucial agricultural sector.Los Grobo Agropecuaria, one of Argentina's leading soybean and wheat producers with an annual turnover of approximately $800 million USD, has informed the National Securities Commission (CNV) of its inability to meet debt payments. The company defaulted on:
-A $100,000 short-term debt instrument due on December 26, 2024
-Upcoming debt scheduled to mature on March 31, 2025
Agrofina, focused on crop protection products, has also defaulted on:
-AR$400 billion (about $400 million) in debt
-The sixth interest installment and first capital amortization of its Negotiable Obligations Class XII, due December 30, 2024
Reasons for Default
The companies cited several factors contributing to their financial distress:
-Lack of market liquidity in the stock exchange debt market for the agricultural sector
-Difficulties in collecting payments on certain credit lines
-Financial problems of an associated enterprise
-Declining sales of agricultural products
-Contracting phytosanitary market
-Excess inventory in distribution channels
Los Grobo Group released a statement acknowledging the temporary liquidity crisis while emphasizing its operational health.
They stated:
-They are working to resolve the situation and analyzing alternatives
-Priority is given to commitments to producers, suppliers, collaborators, and clients
-Focus remains on continuing commercial and productive operations
More details here:
