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Unigel Participacoes reached an agreement with the PIMCO-led creditor group to start an out-of-court restructuring of its debt. This comes after the Brazilian fertilizer company missed coupon payments on its USD and BRL-denominated bonds and also breached debt covenants last year. Unigel is seeking to restructure about BRL 3.9bn ($792bn) of its debt into new bonds and convertible notes wherein, it will issue at least $100mn of new notes maturing in December 2027, and those who inject money will receive a total equity stake of 50%. It has gotten support of more than a third of its bondholders and now has 90 days to convince those holding over 50% of its debt to agree upon the settlement.
Unigel’s 8.75% dollar bonds due 2026 jumped over 7 points to trade at 32.1 cents on the dollar.
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