Unigel-Backed Bond Under Strain as Reserve Fund Running Dry

A securitized local bond backed by struggling fertilizer maker Unigel Participacoes is under liquidity stress, according to people familiar with the matter.

Unigel has not been replenishing the so-called reserve account — a dedicated pool of cash that sits inside the securitization vehicle, the people said, asking not to be named discussing a private matter. A creditor assembly will be called in the coming days to discuss potential solutions, one of the people added, adding that investors in the vehicle could inject more money.

While Unigel’s underlying obligations remain current — meaning the corporate debt itself is not in default ...