Brazil’s Fertilizantes Heringer SA, Viana, told investors Feb. 4 that it has filed for judicial reorganization in the Judicial District of the City of Paulinia, in the State of Sao Paulo. It said the filing is a matter of urgency. The measure has the approval of the board of directors and the company’s controlling shareholder.
Heringer said despite efforts to optimize company’s liquidity situation and indebtedness profile in recent months, including seeking potential investors, the company’s situation has deteriorated. It said the filing is an appropriate measure to enable the continuity of activities and preserve company value.
The company says it has suspended activities in Rondonopolis, Dourados, Tres Coracoes, Uberaba, Rio Verde, Porto Alegre, Rio Grande, Paranagua and Rosario do Catete, “with the consequent termination of some of its employees,” according to a Bloomberg report.
The company announced the closure of three facilities in late 2018 and more last week (GM Feb. 1, p. 1), with the exit of its CFO and director of supply/logistics.