The Hortifrut company informed the Commission for the Financial Market (CMF) of a discrepancy they have with the representative of bondholders regarding if the issuance contracts allow the deterioration in plantations in the last 12 months, which amounts to nearly 55 million dollars, to be added to the calculation of the adjusted EBITDA, "as is done with depreciation and amortization. If the opinion of the RTB prevails, the Company would not comply with this financial covenant."
Hortifrut clarified, however, that “there's only a discrepancy when calculating the adjusted EBITDA. The deterioration in plantations does not affect the cash flow or the Company's recurring business, so it does not affect its ability to comply with its financial obligations."
“The company is working with the RTB to solve this dispute and, if necessary, it will summon a meeting of holders of the Bonds to report the situation and request the consents and/or modifications required under the Issue Contracts,” stated Juan Ignacio Allende Connelly, general manager Hortifrut.
The deterioration in the crops was mainly due to the varietal changes to plants with better genetics. "As a world leader in the berries market, the company has a business model based on the quality of its biological asset. Hortifrut regularly evaluates the performance of its plantations, which entails varietal changes and plant deterioration tests. We do this to be able to give our end customers the best product, optimize productivity, increase efficiency, and keep the asset value updated," the company stated.
Source:cmfchile.cl / bloomberglinea.com