Compania de Alimentos Fargo bondholders agree to support Argentine concurso proceedings

By Caroline Salls

Pittsburgh, Nov. 29 - Compania de Alimentos Fargo SA and its shareholders have reached a support agreement with the company's primary debtholders in connection with negotiations on the terms of a restructuring plan, according to a company news release.

The primary bondholders that have agreed to support Fargo's Argentine restructuring include Rainbow Global High Yield, The Argo Capital Investors Fund SPC, Argo Global Special Situations Fund Segregated Portfolio and The Argo Fund Ltd.

Panificacion Argentina SA and Sanalp 2005 SL are also parties to the support agreement.

Under the support agreement:

• Sanalp will acquire all of the "quirografario" loans, or direct loans in Panificacion Argentina's bankruptcy proceedings, subject to Fargo obtaining the consent of holders of 99% of the loans;

• If the required consents are not obtained, Fargo will either issue bonds to the creditors in exchange for debt incurred under a Sanalp 2005 call option and put option on the bonds or Sanalp will acquire all of the quirografario loans in Fargo's concurso proceeding, at Fargo's option; and

• The bondholders have agreed not to bring any court action against Fargo in connection with its concurso proceedings.

Compania de Alimentos Fargo is a Buenos Aires-based producer and distributor of packaged bread and bakery products in Argentina. Its Chapter 11 case was dismissed by the U.S. Bankruptcy Court for the Southern District of New York on Oct. 12.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.