12:09 PM EDT, 10/02/2024 (MT Newswires) -- Verde Agritech ( VNPKF ) on Wednesday said it successfully renegotiated terms with banks holding 73% of its outstanding loans.

The company said it expects the remaining five creditor banks to accept the same terms or face a 75% debt reduction by a court order, as per applicable Brazilian legislation.

Under the renegotiated agreement, the repayment term is extended to 120 months, with principal repayments suspended for 18 months.

Verde added that 90% of the principal will be repaid on a staged schedule, starting after 55 months. The company expects the deal to yield cash savings of R$115 million over the next 24 months.

Additionally, all interest payments are suspended for 18 months, followed by an average nominal interest payment based on Brazil's CDI plus 2.08%. The total interest rate has been materially reduced, with the indexation above the CDI decreased by about 50% compared to previous loan agreements.

"The renegotiation process was complex and time-consuming, lasting several months," Verde's Founder and CEO Cristiano Veloso said. "We are deeply grateful for the support of our main lenders and appreciate their repeated understanding of the severe crisis affecting the Brazilian agricultural sector."

Verde shares were last seen up $0.10 to $0.75 on the Toronto Stock Exchange.

Price: 0.75, Change: +0.10, Percent Change: +15.38