(Bloomberg) -- CHS Inc., the biggest U.S. farm cooperative, has been waiting for two years to recover part of the millions of dollars it lent Brazilian soybean trader Seara. A legal challenge means it may have to wait even longer.
Parana state-based Seara filed for creditor protection in 2017 and in April this year had a judicial recovery plan approved that would have allowed CHS to use its credits to acquire a grain terminal in a court auction as a way to recoup some of the money it’s owed.
But creditors including agribusiness giant Bunge Ltd. and farm lender Rabobank challenged the recovery plan, alleging CHS was granted unfair privileges, according to people with knowledge of the matter. As a result, a court suspended parts of the plan last week, including the sale of four grain terminals, the people said.
CHS, which provided funding for the Brazilian trader as a supplier of soybean for export, is by far its biggest creditor at 468 million reais ($113 million), according to a court filling. A Bunge unit is owed about 70 million reais.
Bunge, Rabobank, Seara and CHS all declined to comment.
Seara, a family-owned company founded 60 years ago, moved 2 million metric tons of grain before entering into bankruptcy protection. Its most valuable terminals are in Paranagua port and Maringa, which are d in 235 million reais and 169 million reais, respectively, according to fillings.
The firm isn’t related to JBS SA’s chicken unit, also called Seara.
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