Bunge's takeover of Vicentin, a bankrupt soy company, is set back by court decisions in Argentina

A court in Argentina has ruled an agreement between Vicentin, the soymeal giant, and its creditors unconstitutional. This will hinder any attempt to takeover the bankrupt company that is stuck in a long legal battle.

The Supreme Court of Santa Fe Province, where Vicentin's headquarters is located, has ruled that the company must negotiate a new deal with its creditors before a proposed acquisition by U.S. grains traders Bunge and Glencore-backed oilseeds crusher Viterra, as well as local group ACA, can proceed.

Bunge and Viterra announced last year a mega-merger deal.

Vicentin, Argentina's largest soy oil and meal producer, is now in debt to the government and international creditors, after defaulting in 2019 on more than $1 billion of debt.

The court sent the ruling late on Tuesday after receiving a complaint from a hostile creditor.

Vicentin has not responded to a comment request. Bunge didn't immediately respond to an inquiry for comment.

Argentina is the top exporter in the world of soymeal, oil and soymeal meal. Family-owned Vicentin has been the crown jewel for decades in the soy-processing industry.

The then-center-left government of the country expressed an interest in Vicentin nationalization, but backed down from the plan following a backlash from Argentina's businesses.

(source: Reuters)