In recent hours, the agro-industrial giant Vicentin achieved two key developments that could mark a turning point in its prolonged judicial and financial ordeal. The company not only secured the commitment of Unión Agrícola de Avellaneda (UAA), which was already supplying sunflower and will now also provide soybeans to operate the San Lorenzo plant, but also brought in a new major player: Ammagi, a Brazilian firm entering for the first time with a fazon contract for the Ricardone plant.

The news brings a sense of relief amid an unrelenting storm. Thanks to the fazon scheme -where companies supply raw materials and use Vicentin’s industrial plants for processing- the company managed to cover March and April salaries, temporarily defusing a labor conflict that threatened to halt operations entirely. However, an even greater challenge lies ahead.

Starting in June, Vicentin enters a new phase: the cramdown process, which opens the door for third parties to submit offers to acquire the company. This coincides with a complaint filed with the National Supreme Court in an attempt to halt what many see as the final chapter in Santa Fe’s longest-running corporate legal saga.

Is the Fazon Scheme Enough?
The new production model based on fazon agreements—where companies provide raw materials to process in Vicentin’s plants—appears to be the last card to keep the fallen giant afloat. Ammagi’s contribution of sunflower for Ricardone is seen as a vote of market confidence. However, even with signed contracts from major players like Cargill, Bunge, LDC, Molinos, Commodities, ACA, and Viterra, the question echoing across the sector is: Is it enough?

For now, the response is an uneasy silence. The core issue remains unchanged: a growing post-bankruptcy debt with no financial backing to address it, and operations still below the profitability threshold. As judicial sources told SL24, “the company is walking a tightrope.” Some are already warning of a potential Black Swan event that could trigger an unexpected bankruptcy, even before the cramdown process concludes.

Southern Node Active, Northern Node on Hold
With the new agreements, the Ricardone and San Lorenzo plants are resuming operations under the oversight of the intervening body, acting on behalf of Judge Fabián Lorenzini. These facilities represent the group’s most critical industrial hub, including the river terminal and the country’s largest soybean extraction plant. In contrast, the northern node in Avellaneda remains reliant on prior contracts, primarily for corn processing, with no new developments regarding additional raw material supplies.

This operational disparity raises concerns, particularly due to the northern plant’s financial state, which carries significant post-bankruptcy debts with key suppliers, such as the local electric cooperative. Failure to meet these payments could lead to service cuts, potentially sidelining the last productive stronghold in northern Santa Fe.

The Judicial Landscape Remains the Most Delicate
The cramdown process opens a new playing field, where interested parties must submit offers and persuade the judge and creditors. Simultaneously, the case continues to escalate on multiple judicial fronts: criminal charges against executives, labor claims, tax debts, and the request for Supreme Court intervention.

Meanwhile, the country watches closely as this pivotal chapter unfolds for one of Argentina’s most iconic agricultural companies, once among the top five exporters, now struggling to survive with the bare minimum support from companies that were once competitors but now appear as temporary allies.