BUENOS AIRES, Oct 23 (Reuters) - An Argentine court has

ruled that an agreement between soymeal giant Vicentin and its

creditors is unconstitutional, a move that will hamper an

attempted takeover of the bankrupt firm that has become stuck in

an extended legal battle.

The decision by the Supreme Court of Santa Fe province,

where Vicentin is based, means the company will have to

negotiate a new agreement with creditors before a proposed

takeover by U.S. grains trader Bunge, Glencore ( GLCNF )-backed

oilseed crusher Viterra and local group ACA could move

ahead.

Bunge and Viterra announced a mega merger deal last year.

Vicentin, once Argentina's biggest soy oil and meal

exporter, is indebted to the state and international creditors

after defaulting on debts of more than $1 billion in 2019.

The ruling, shared with Reuters on Wednesday but sent down

by the court late on Tuesday, came in response to a complaint by

a hostile creditor.

Vicentin did not respond to a request for comment. Bunge did

not immediately respond to a request for comment.

Argentina is the world's top exporter of soymeal and oil,

and family-owned Vicentin was for decades the crown jewel in the

country's soy-processing sector.

In 2020, the country's then center-left government expressed

interest in nationalizing Vicentin, but it backed off from the

plan after blowback from Argentina's business community.