Argentina court deals setback to Bunge takeover of bankrupt soy firm Vicentin

An Argentine court has ruled that an agreement between soymeal giant Vicentin and its creditors is unconstitutional, a move that will hamper an attempted takeover of the bankrupt firm that has become stuck in an extended legal battle.

The decision by the Supreme Court of Santa Fe province, where Vicentin is based, means the company will have to negotiate a new agreement with creditors before a proposed takeover by US grains trader Bunge, Glencore-backed oilseed crusher Viterra and local group ACA could move ahead.

Bunge and Viterra announced a mega merger deal last year.

Vicentin, once Argentina’s biggest soy oil and meal exporter, is indebted to the state and international creditors after defaulting on debts of more than $1 billion in 2019.

The ruling, shared with Reuters on Wednesday but sent down by the court late on Tuesday, came in response to a complaint by a hostile creditor.

Vicentin did not respond to a request for comment. Bunge did not immediately respond to a request for comment.

Argentina is the world’s top exporter of soymeal and oil, and family-owned Vicentin was for decades the crown jewel in the country’s soy-processing sector.

In 2020, the country’s then center-left government expressed interest in nationalizing Vicentin, but it backed off from the plan after blowback from Argentina’s business community.

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Tags: Bunge, Viterra, soy oil, Argentina, soy meal, Vicentin, court, creditors