Yanina Otero 
The default of Grupo Los Grobo continues to spread across various areas of the financial sector. After failing to meet promissory note obligations worth over US$10 million and accumulating bounced checks amounting to approximately AR$3.1 billion (US$2.6 million at the MEP exchange rate), the situation is now affecting banks.
Los Grobo Agropecuaria and Agrofina, two companies of Los Grobo holding, informed the National Securities Commission (CNV) that they could not meet debt maturities of nearly US$30 million with a group of creditors that includes Banco Galicia, Santander, HSBC, Bapro, Supervielle, Hipotecario, Macro, and Industrial.
Additionally, Promontoria Holding 318 B.V., an international financial firm, is also being affected, given that it is a lender in export pre-financing contracts that are also in default.
Los Grobo Agropecuaria is one of Argentina’s main soybean and wheat producers. Besides growing and trading grains, it distributes agricultural inputs. The group has a yearly turnover of approximately US$800 million.
In Agrofina’s case, defaults include payments totaling US$6.2 million from a debt refinancing contract signed in December 2021, and another US$2.7 million from an export pre-financing contract originally agreed upon in November 2019. The company also reported that it would be unable to meet payments due on January 15, 2025, amounting to AR$202.2 million (US$173,000) in interest and AR$4.27 billion (US$3.6 million) in capital and interest from syndicated contracts.
Los Grobo Agropecuaria reported similar defaults. The company failed to pay US$8.5 million from a debt refinancing contract and US$4 million from an export pre-financing contract, both shared with Agrofina. It also stated it could not meet upcoming maturities of AR$258.8 million (US$221,000) in interest and AR$4.76 billion (US$4 million) in capital and interest associated with syndicated loans.
Collateral
In this context, the lack of agreement in negotiations with creditors has triggered the activation of guarantee mechanisms linked to the contracts. This means that the banks and Promontoria are entitled to enforce the assets pledged as collateral, either through liquidation or transfer, to cover the unpaid debts. TMF Trust Company, as the guarantee agent, will oversee the administration of the trust assets and their application to meet financial obligations if necessary.
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Meanwhile, both companies confirmed they are continuing negotiations with creditors to reach a solution that allows for restructuring pending payments and avoiding further legal and operational complications. However, the magnitude of the amounts involved — US$21.6 million and AR$9.49 billion (US$8.16 million) combined — reflects a critical outlook for Grupo Los Grobo, jeopardizing its financial sustainability and its relationship with the banking system.
Producer protests
The conflict is escalating beyond the financial sector. This week, a group of agricultural producers and grain transporters gathered at the entrance to Los Grobo’s storage facility in San Miguel del Monte in Buenos Aires Province to demand overdue payments. At the same time, they accused the company of engaging in “asset stripping,” alleging that grain was being removed during the night while financial obligations to producers who had delivered merchandise remained unmet. The situation is increasingly dire and shows no sign of resolution, with the primary sector bearing the brunt of the impact.
Company sources told the Herald’s sister title, Ámbito: “We categorically deny the alleged asset stripping of the company. This is erroneous information. There is an absolute availability of grain that cannot currently be distributed from the San Miguel del Monte plant due to truckers blocking the facility for other grievances unrelated to the grain distribution, which is proceeding as usual both in San Miguel and other company facilities.”
On the other side, producers refute the company’s claims and are organizing an assembly at the storage plant’s entrance to discuss next steps. The situation is becoming increasingly complex, and the farmers who have delivered goods remain the most vulnerable link in the chain.