Rizobacter Argentina, one of the leading suppliers of agricultural inputs, has announced the start of a debt restructuring process following its failure to pay a negotiable obligation of approximately $5.1 million that was due on the 10th of this month. The company has activated a grace period on this bond, which has a pending balance of just over $3.8 million. In addition to this specific obligation, the company has a broader set of negotiable obligations totaling $42.7 million that are scheduled to mature between 2026 and 2027, according to the latest report from the credit rating agency Fix SCR.

In its efforts to manage this financial strain, Rizobacter is aiming to secure the approval of at least 70% of bondholders in order to extend the payment terms to 42 months. This move comes after a recent downgrade in the company’s credit rating, reflecting increasing concerns over its risk profile. Furthermore, the market is reportedly observing advanced negotiations between Rizobacter and its bondholders, indicating that the company is taking proactive measures to stabilize its financial situation.

The implications of this restructuring process could be significant, not just for Rizobacter but for the broader agricultural sector in Argentina. As a major player in providing essential agricultural inputs, any financial instability within Rizobacter could impact supply chains and pricing in the market. Moreover, this situation highlights ongoing challenges faced by companies in Argentina, such as high inflation and economic volatility, which continue to affect their operational capabilities and investor confidence.