Brazil judge delays Imcopa plant auction after Bunge seeks more info (updated)

CJ CheilJedang

06/12/2019 17:22

(Repeating to fix formatting)
    By Ana Mano
    SAO PAULO, Dec 6 (Reuters) - A Brazilian bankruptcy judge
has pushed back the sale of two soy crushing plants after
U.S-based grain trader Bunge Ltd  BG.N  alleged the seller
provided "scarce and incomplete" information about the assets,
according to court filings seen by Reuters on Friday.
    The auction of the two plants by privately owned Imcopa
group, rescheduled to Feb. 17 from Dec. 4, is part of the
seller's plan to emerge from bankruptcy. 
    Imcopa and a court-appointed judicial administrator agreed
with canceling this week's auction, court documents showed. 
    Bunge alleged in a filing that missing and "outdated"
information in Imcopa's data room made it hard to analyze the
merit and risks of the potential investment, referring mainly to
environmental and regulatory approvals for the plants to
operate.
    The trading firm's Brazilian unit also claimed
"inconsistencies" between the amended reorganization plan
approved by Imcopa's creditors in 2017 and bidding rules
published last October.
    The inconsistencies would mainly relate to whether the
plants may be sold separately by Imcopa. 
    According to Bunge's interpretation of Imcopa's
reorganization plan, both plants should be sold together as part
of the same "UPI" structure, which can be sold free of any
liabilities.
    Partially agreeing with Bunge's arguments, Judge Mariana
Gusso ordered Imcopa to update the data room, according to a
Dec. 3 decision seen by Reuters. However, the ruling stated that
Imcopa's reorganization plan allows the creation "of up to two
UPI" structures.
    Bunge declined to comment.
    The minimum asking price for each of the plants is 25
million reais.  urn:newsml:reuters.com:*:nL2N27A0X8
    The combined debt attached to the two plants, which the
buyers will have to assume, is 1.043 billion reais ($248
million) as of December 2018, according to public records.
    Imcopa, which makes soyoil and soy protein concentrate used
as livestock feed, is one of the largest non-genetically
modified soy crushers in Brazil.
    Imcopa declined to comment.
    "Bunge not only intends to acquire the two industrial plants
... (it also) intends to hire a significant number of the
current employees allocated to Araucária and Cambé ...,"
according a filing dated Nov 26.
    Aside from Bunge, Reuters has identified at least another
two potential bidders for Imcopa's plants in Paraná state,
including CJ Selecta, owned by South Korea's CJ Cheiljedang
 097950.KS , and the local unit of Russia's Sodrugestvo
 SODRU.UL .
    Neither returned a request for comment.
    In August, Imcopa unilaterally terminated a leasing contract
with brewer Grupo Petrópolis for the two crushing plants as it
was preparing to sell the assets, alleging a breach of contract.
 urn:newsml:reuters.com:*:nL2N25B1RF    

 (Reporting by Ana Mano
Editing by Chizu Nomiyama, Richard Chang and Jonathan Oatis)
 ((ana.mano@thomsonreuters.com; Tel: +55-11-5644-7704; Mob:
+55-119-4470-4529; Reuters Messaging:
ana.mano.thomsonreuters.com@reuters.net))