Hortifrut in Chile indicates deterioration in plantations in the last 12 months for about 55 million dollars
The company Hortifrut informed the Commission for the Financial Market (CMF) of a discrepancy with the representative of bondholders due to the deterioration in plantations in the last 12 months for about 55 million dollars, regarding whether the issuance contracts allow that this deterioration can be added to the calculation of adjusted EBITDA, “as is done with depreciation and amortization. If the opinion of the RTB prevails, the Company would not comply with this covenants financial".
Hortifrut clarified, however, that “the discrepancy is only at the measurement level of the adjusted EBITDA calculation. The deterioration in plantations does not affect the Company's cash or recurring business, so it does not affect its ability to meet its financial obligations."
“The company is working with the RTB to resolve this difference and, if necessary, will request a summons to a meeting of Bondholders to report the situation and request the consents and/or modifications required under the Issuance Contracts” said Juan Ignacio Allende Connelly, general manager of Hortifrut.
The deterioration in crops was mainly due to varietal exchanges for plants with better genetics. “As a world leader in the market for berries, the company has a business model based on the quality of its biological assets. On a recurring basis, Hortifrut evaluates the performance of its plantations, which entails varietal replacements and plant deterioration tests. The above aims, among others, to reach end customers with the best product, optimize productivity, increase efficiency and keep the value of the asset up to date”, the company stated in an Essential Fact.