AgroGalaxy’s (AGXY3) billion-dollar debt and its list of creditors – Money Times


agrogalaxy judicial recovery (1)

The company's list of creditors includes major banks and companies in the agricultural sector; AgroGalaxy has R$11.1 million in labor debts

A AgroGalaxy (AGXY3) indicated total liabilities of R$4.67 billion in its request for judicial recovery.

Among the company's largest creditors, Vert Companhia Securitizadora stands out, responsible for structuring AgroGalaxy's Agribusiness Receivables Certificates (CRAs), which total R$516.4 million.

The early maturity of these CRAs was triggered due to the company's liquidity crisis, putting additional pressure on its financial situation.

The list of creditors includes major banks such as:

In addition to these debts, the company also has debts with rural producers related to grain price fixing operations. The company also listed debts with its controller, Agrofundo Brasil X FIP, managed by Aqua Capital, in the amount of R$152.3 million.

In the agricultural sector, the list of creditors still includes other relevant names in the market

  • Mosaic Fertilizers: R$ 119.5 million
  • Rainbow Agricultural Defensives: R$ 116.9 million
  • Total Biotechnology: R$ 115.5 million.

In addition to unsecured debts, the group also recognized R$11.1 million in labor debts (Class 1) and another R$9.6 million, in addition to US$7,000, owed to micro and small business owners (Class 4), in accordance with judicial recovery legislation.

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What explains the AgroGalaxy crisis?

AgroGalaxy claims it faced a combination of adversities, including “drastic decline in commodity prices,” “adverse weather conditions,” and “restrictions on access to credit.” These factors directly affected its liquidity and cash generation capacity, leading to an increase in net debt.

On Thursday (19) AgroGalaxy obtained an injunction granted by judge Alessandra Gontijo do Amaral, of the 19th Civil and Environmental Court of Goiânia, which suspended the execution of debts and contractual terminations resulting from the request for judicial recovery.

The decision also blocked early maturity clauses, granting the company a temporary 45-day breathing space to prepare its recovery plan and begin negotiations with creditors.

Among the institutions mentioned are Banco do Brasil, Santander, Banco ABC, Banco Daycoval and Citibank, which were prohibited from retaining approximately R$205 million in receivables linked to AgroGalaxy's accounts. These funds must be transferred to freely transferable accounts, under penalty of a daily fine of R$100,000 in case of non-compliance.

*With information from Estadão Conteúdo

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