AgroGalaxy's restructuring plan approved by creditors

The restructuring plan for Brazilian agricultural inputs producer, reseller, and distributor Grupo AgroGalaxy was approved this week by the company's creditors.

According to AgroPages' findings, the agreement came after "exhaustive negotiations," which included "delays and tensions" with creditors during the General Assembly held in Goiânia, the capital of the Brazilian state of Goiás.

Major creditors, including Banco do Brasil, which is owed BRL391 million by AgroGalaxy, Banco Santander, with a BRL273 million claim, and trading company LDC, with BRL7 million, also participated in the meeting.

According to Isan Rezende, president of FEAGRO MT (Federation of Agricultural Engineers of Mato Grosso State), the main point of contention was the more favorable treatment given to so-called "partners," meaning those creditors who continued negotiating with AgroGalaxy even after the bankruptcy protection filing.

Despite initial resistance, the proposal was adjusted and ultimately approved with the support of the majority of the 1,410 creditors present.

One decisive argument was the expectation of an influx of new financial resources on April 30, stemming from the sale of inputs from the last Brazilian harvest.

With the approval, the plan now proceeds to ratification in the 19th Civil and Environmental Court of Goiânia. This is the final step for AgroGalaxy to attempt to rebalance its finances and maintain its activities in the agro-industrial sector.

In total, 15 payment modalities were stipulated, with different rules for each type of creditor. Labor claims will have priority, with full payment for amounts up to BRL205,800. Amounts above this limit will follow the same conditions as unsecured creditors.

According to the agricultural inputs distributor, the full plan and the assembly minutes are available on its institutional website, as well as on the websites of the Brazilian Securities and Exchange Commission (CVM) and the Brazilian stock exchange B3.

The company emphasizes that it will keep shareholders and the market informed about the progress of the judicial recovery process, as required by current legislation.

One of Brazil's largest agricultural input distribution platforms, AgroGalaxy, has been under bankruptcy protection since 2024. The company filed its request in September 2024, facing debts of BRL4.6 billion.

In January 2025, AgroGalaxy announced a memorandum of understanding for the potential sale of its portfolio of overdue and non-judicialized debts, totaling approximately BRL760 million.

In the third quarter of 2024, the company reported net revenue of BRL1.2 billion, a 48.6% decrease from the previous year. The group's net loss was BRL1.58 billion, an increase of 1,679% compared to the same period in the previous year. (1BRL corresponds to US$5.588)

(Editing by Leonardo Gottems, reporter for AgroPages)