Lavoro Limited (LVRO) Reaches Out-of-Court Agreement with BASF and EuroChem

Lavoro Limited (NASDAQ:LVRO) is one of the 7 Best Fertilizer Stocks to Buy According to Hedge Funds.

Lavoro Limited (LVRO) Reaches Out-of-Court Agreement with BASF and EuroChem

A rustic farm field with a tractor spreadng nitrogen-based fertilizer in the background.

To address financial challenges, the company reached an out-of-court restructuring agreement with key suppliers like BASF and EuroChem on June 18, 2025. Under Brazil’s Recuperacao Extrajudicial framework, the company is reorganizing its debts outside of court.

The EJ plan (Extrajudicial Plan) aims to restructure $0.45 billion in trade payables, against which the company aims to secure a steady supply of products in the future. Furthermore, the plan aims to help the company mitigate supply chain disruptions by making adjustments to the inventory financing terms and payment schedules.

This restructuring is critical to Lavoro Limited (NASDAQ:LVRO), which faced difficulties in FY25 due to product shortages and financial constraints. With the help of extended payment terms and in-kind settlement with creditors, the company aims to improve its financial flexibility and stabilize its inventory flow through 2030.

Lavoro Limited (NASDAQ:LVRO), the region’s largest pure-play agricultural inputs company, is a key player in Latin America. The company distributes crop protection products, seeds, and fertilizers across Brazil and six other countries, operating through both physical stores and digital platforms.

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