Unigel Participacoes SA reported that it has no intention to file for bankruptcy protection, given that negotiations with its main creditors have evolved “significantly” in recent days, the company said in a statement, according to a Feb. 6 Bloomberg report.
Earlier reports were that Unigel was preparing to file for bankruptcy as negotiations were at a stalemate. The company was granted a 60-day protection from creditors by a court on Dec. 14. Unigel and creditors are closing in on their deadline. The company said it believes that an agreement is the best solution for all parties and that it should conclude the negotiation soon.
Local bondholders declared the early maturity of some notes last year, triggering an acceleration of the troubled chemical and fertilizer maker’s debt and prompting Unigel to seek protection in court. The firm, which was also holding separate talks with external bondholders, was cut to default by S&P Global Ratings in November after missing payment of a $23.2 million coupon.