(Photo: AgroGalaxy)
A AgroGalaxy (AGXY3) filed for judicial recovery this Wednesday (18), with the filing approved by the company's board of directors.
The movement impacted the market Fiagros (Investment Funds in Agribusiness Production Chains)especially JCP Crédito Fiagro (JGPX11), which fell by 6.44%. The fund has 8.1% of its net equity (NE) exposed to the company.
In addition to this Fiagro, other funds are linked to AgroGalaxy. Among them are:
- XPCA11 (XP Crédito Agrícola) – 7% of PL (through two different operations) – fund fell 0.80%
- CPTR11 (Capitania Agro Strategies) – 7% of PL – remains at 3.10%
- AAZQ11 (AZ Quest Sole) – 0.4% PL – high of 0.26%
- AGRX11 (Exes Araguaia Fiagro) – 5.62% of PL – drop of 1.60%
- BBGO11 (BB Crédito Fiagro) – 5% of equity – down 1.45%
- XPAG11 (XP Crédito Agro) – 3.8% of equity
- JGPT11 (JCP Crédito Agro) – 6.7% of the equity
According to Caio Nabuco, real estate fund analysts at Empiricus Researchthe event represents some of the risk that the sector has been facing in recent months, with pressure on prices and margins in the chain. “Our recommendation since last year is to stay out of Fiagros and closely monitor this type of operation, especially in terms of guarantees and structures.”
According to a statement from the company, AgroGalaxy's request for judicial recovery was filed on an emergency basis, given the early maturity of certain financial transactions, aiming to protect its assets and those of its investments and to enable the readjustment of its capital structure in light of the challenges facing Brazilian agribusiness. In parallel, the company said it will adopt a series of measures aimed at reducing its costs and optimizing its operations.
“AgroGalaxy tried, in every way, to avoid resorting to the courts, but the measure is necessary to protect the business and, more importantly, to allow the company to continue working side by side with farmers”, comments Eron Martins, CEO of AgroGalaxy.