Colombia approves reorganization for Venezuelan fertilizer firm Monómeros

Monómeros, a key Venezuelan fertilizer producer with operations in Barranquilla, Colombia, has been granted a lifeline by Colombian authorities. The Superintendencia de Sociedades, the country's corporate oversight body, approved a reorganization plan for the company, effectively saving it from potential closure.

The decision came after a near-unanimous vote of confidence from Monómeros' creditors, who backed the reorganization agreement with 99.569% of their votes. This overwhelming support, achieved during insolvency proceedings under Law 1116 of 2006, ensures the company can continue its operations and establish a new timeline for repaying its debts to various suppliers and financial institutions.

Monómeros faces debts totaling 647 billion Colombian pesos, approximately $160 million USD. A significant portion of this debt is linked to its parent company, Pequiven, a subsidiary of Venezuela's state-owned oil and natural gas company, PDVSA. The approval of the reorganization plan is seen as crucial for the financial recovery of Monómeros, which plays an important role in Colombia's agricultural sector.

Adding to its operational stability, the U.S. Office of Foreign Assets Control (OFAC) renewed a license in March, allowing Monómeros to continue engaging in international transactions, including with banks and other companies, for another two years. This license is part of the sanctions administered by the U.S. against the Venezuelan government and its affiliated entities.