Verde secures debt renegotiation agreement covering 92% of total debts, reaching improved financial terms
Published by Emilie Grant,
Editorial Assistant
World Fertilizer,
Verde AgriTech Ltd (Verde) had announced that creditors representing over 92% of the company’s total debt have adhered to proposed renegotiation terms. Non-adherent creditors represent R$11.3 million of the debt, and are now subject to different payment conditions, with a reduction of 75% of the balance and an interest rate linked to the Taxa Referencial (TR) (a Brazilian reference interest rate set by the Central Bank, currently at 0.82%/year). Following the agreement reached with a majority of creditors, Verde’s comprehensive renegotiation of loans now requires court homologation.
Once the court approves the agreement, non-adherent creditors will face a 75% reduction in their outstanding balance. The remaining debt will accrue interest based on the TR , currently estimated at 0.82%/year, a substantial decrease from the previous rate of 16.59%/year. In total, R$8.5 million will be written off from the debt amount.
Non-adherent creditors under the renegotiated agreement will be subject of the following terms:
- Discount: A 75% discount on the total debt amount.
- Grace Period: An 18-month deferral on principal and interest payments, starting from the date of court approval of the renegotiated agreement.
- Interest Accrual: Interest charges as outlined in the agreement will start accruing once the grace period concludes.
- Principal Repayment Schedule: Payments will be made in monthly installments starting after the end of the grace period, based on a defined repayment structure.
- Financial Charges: Debt will be adjusted based on the TR.
Repayment Term: Debt repayments will be made over 108 months, beginning after the grace period specified above.
Read the article online at: https://www.worldfertilizer.com/project-news/12112024/verde-secures-debt-renegotiation-agreement-covering-92-of-total-debts-reaching-improved-financial-terms/
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