Argentine court declares bankruptcy start for Los Grobo and Agrofina

The 12th Commercial Court of Argentina has ordered the initiation of bankruptcy proceedings for Los Grobo Agropecuaria and the input producer and distributor Agrofina. These are the two main companies of the Los Grobo Group, one of Argentina's leading agro-industrial conglomerates.

With this judicial decision issued by Judge Hernán Papa of the National Court of First Instance in Commercial Matters No. 12, the list of creditors and the total debt of the company as of December 31, 2024, has been disclosed. According to the documents presented, the company has 3,740 creditors and a debt of $320.508 million.

The measure, formalized on February 20, marks a new chapter in the group's challenging economic situation, burdened by multimillion-dollar debts and defaults. The latest financial statements reflect the magnitude of the problem: In the half-year ending December 2024, Los Grobo Agropecuaria recorded a net loss of $26.565 billion, quadrupling the deficit from the same period the previous year.

This report left the company with negative equity of $13.218 billion, which, according to the General Business Law, places it in a condition to be dissolved. Agrofina also suffered a significant decline, with a negative result of $16.185 billion in the same period.

The group has a strong operational structure, with 34 branches, 27 warehouses, and 16 grain collection and processing plants, with a storage capacity of over 350,000 tons. Its operations extend across Buenos Aires, La Pampa, Córdoba, Santa Fe, and Entre Ríos, with more than 500 employees. In the last fiscal year, over 2 million tons of grains were collected, and 218,000 hectares were planted in partnership with 40 producers.

Meanwhile, Agrofina is focused on the production and commercialization of agrochemicals. The company has a modern industrial plant in Zárate, Buenos Aires province, where it produces herbicides, insecticides, and fungicides for local and international markets. This business segment performed poorly last year due to a sharp decline in demand.

Faced with this scenario, Victoria Capital Partners, the investment fund that controls 90% of the group, is evaluating its next steps. The promised capital injection to cover short-term maturities did not materialize, leading to a default in December. Among the alternatives being considered are the incorporation of new investors or the sale of strategic assets to restructure the debt. The reality shows that this investment fund is no longer interested in the agricultural business, as it no longer offers the profitability levels it once did.

The company, however, states that it will continue operating while seeking a solution to stabilize its financial situation. "The companies will continue to operate and work on a comprehensive solution to regulate their businesses and financial capacity. We will prioritize our commitment to producers, suppliers, employees, and clients," they said.

List of Creditors

Most of Los Grobo Agropecuaria's main creditors are financial and banking institutions, agricultural input companies, and some agricultural and collection firms. The list is led by the European banking entity Promontoria Holding, with a claim of 27.255 million Argentine pesos, the remaining balance of a $50 million loan received by the bankrupt entity in 2019.

Following in the ranking of creditors are input companies such as Atanor, Bayer/Monsanto, UPL, GDM (Don Mario), Profertil, Summit Agro, Bunge, Grupo Bioceres, Rizobacter, Tecnomyl, Bioceres Semillas, BASF, FMC Química, Advanta Semillas, and Delta Agroinsumos, among others.

Judge Hernán Papa has begun notifying the Property Registries in Argentine provinces to identify properties registered under Los Grobo Agropecuaria and Agrofina and to communicate the general prohibition on alienating and registering such assets as part of the bankruptcy process.

(Editing by Leonardo Gottems, reporter for AgroPages)