Brazil’s Fertilizantes Heringer SA, Viana, said on 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 group.
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 said it has suspended activities in nine additional locations – 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 (GM Dec. 14, 2018). Those plants were identified as Patos de Minas and Sao Joao do Manhuacu in Minas Gerais, and Bebedouro in Sao Paulo. On Jan. 31, it announced the resignations of its CFO and director of supply/logistics (GM Feb. 1, p. 1).
The company has debt of 2.9 billion reais (US$810 million). Heringer posted a nine-month net loss of R$441.4 million on net revenue of R$3.1 billion (GM Nov. 30, 2018), compared to the year-ago loss of R$102.4 million and R$3.3 billion, respectively.
A controlling group owns 51.5 percent of Heringer, with a share free float of 29 percent. Nutrien Ltd., Saskatoon, and OCP SA, Casablanca, each own an approximate 10 percent each of the company.