(Bloomberg) — Lenders Banco do Brasil and Citigroup are among the largest creditors of AgroGalaxy Participacoes SA, the latest Brazilian agricultural company to file for bankruptcy protection.
AgroGalaxy, which sells crop inputs to farmers and sought protection from creditors on Wednesday amid looming debts and the resignation of several executives, listed about 3.8 billion reais ($693 million) in local currency debt and another $160 million in liabilities, according to documents seen by Bloomberg.
One of the largest creditors, Vert Companhia Secruritizadora, a securitization company that structures agribusiness receivables certificates (CRAs), a relatively new type of fixed-income security used to finance the sector and help finance Brazil’s agricultural boom, is owed about 516 million reais.
The 65-page document also names state-run Banco do Brasil (owing 391 million reais, or about $600,000) and Citibank (owing 107 million reais, or about $32 million). Santander is owed 278 million reais, according to the document, which was earlier reported by local media.
AgroGalaxy’s creditors also include several crop input companies. Fertilizer supplier Mosaic is owed nearly 120 million reais and $18.2 million, while BASF is owed 40 million reais and just over $500,000.
Mosaic said in a statement that it was willing to negotiate with AgroGalaxy and that the exact amount owed would be dealt with in the judicial recovery process, adding that it had a “strict” risk management policy.
Vert did not immediately respond to a request for comment. BASF and AgroGalaxy declined to comment, as did Bradesco, Citigroup, Banco do Brasil and Santander.
The Aqua Capital-backed company said in February it was seeking a covenant waiver after its leverage ratio exceeded levels agreed with creditors. It said “external events” hampered its ability to generate cash and meet obligations, according to court documents.
AgroGalaxy shares fell 42% this week and are down 82% this year. The company said in its bankruptcy filing that lower commodity prices, higher interest rates, “adverse weather events” and higher production costs had hit its liquidity by leading to higher defaults by farmers on its crop inputs.
—With assistance from Rafael Almeida dos Santos.
For more stories like this, visit bloomberg.com
Follow us On Social Media Google News and Twitter/X