Elisa Agro’s creditors are leading conversations with strategic investors to sell the company. There are five potential buyers evaluating the irrigated agriculture company, Pipeline found, including BrasilAgro.
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Controlled by the Miter family (which also owns Miter Realty), Elisa Agro filed for judicial recovery at the beginning of February with a debt of R$665 million, of which R$327 million in Agribusiness Receivables Certificates (CRAs). Among the largest bank creditors are Bradesco, Santander and ABC.
Founded in 2016, the company (formerly called Miter Agro) concentrates operations in the Araguaia Valley, in Goiás, focused on the production of beans, corn, cotton and mainly soybeans. The company took on debt to finance investments in irrigated agriculture, which is one of the largest in Brazil.
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Due to the pandemic, there were delays in the delivery of equipment, which led to the postponement of the project’s revenue generation. The scenario of rising input costs due to the war in Ukraine, rising interest rates and falling grain prices worsened the company’s financial situation, which postponed the payment of interest from CRAs, scheduled for last November. The group hired Alvarez & Marsal for the restructuring and One Partners to help find interested parties.
Shareholders sold around 10% of the developer Miter to release the developer’s shares pledged as collateral for bank debts. Fabrício Miter and his mother, Maria Elisa Marcondes Miter, requested judicial recovery in individuals and were guarantors of the CRAs.
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Negotiation with potential investors involves transferring the debt, with a possible discount. “I think it’s difficult to get a sale price that leaves money for the family,” said a source close to the matter. Shareholders can also sell shares that are unencumbered in the transaction.
The sale process is moving towards firm acquisition proposals, which could happen as early as April. Until then, BrasilAgro will decide whether to continue in the dispute – when asked, the company says it does not comment on market speculation.
