(Bloomberg) -- Bank of America Corp. is among firms scooping up local bonds from struggling Brazilian fertilizer maker Unigel Participacoes SA, according to people familiar to the matter.

The Wall Street bank and Jive Investments, Brazil’s largest distressed-asset manager, have been buying up the notes in the secondary market after Unigel presented its plan for an out-of-court restructuring last month, the people said, asking not to be named because the information isn’t public. They gave no details on the exact timing of the trades, or their size. 

Local asset managers ARX Investimentos and Icatu Vanguarda, meanwhile, have trimmed and scrapped their positions, respectively, the people added.

The trades come as a group of holders of local notes, which account for about 11% of Unigel’s total debt, consider legal measures to contest the current plan, according to the people. The proposal to restructure about 3.9 billion reais ($780 million) in existing debt could lead to losses of as much as around 90% for some holders, two of the people said. 

ARX declined to comment. BofA, Icatu and Jive did not return messages seeking comment.

Unigel won the support of international bondholders, such as Pacific Investment Management Co. and DoubleLine Capital, for an out-of-court restructuring. The proposal drew the ire of some local creditors, who criticized the plan implies smaller recovery levels for their claims. The company is now working to gain approval from holders of more than 50% its debt to avoid a bankruptcy filing. 

Unigel declined to comment. 

The company skipped bond payments last year amid a downturn in its business. Lower fertilizer prices around the world have eroded earnings and led its leverage ratio to sour, triggering cross-default clauses. Unigel reached a last minute agreement with creditors led by Pimco to sort things out-of-court, which included a recovery plan for the holding company and another one of for its operating units. Holders of local notes, which have debt tied to the holding firm, were left out of the latter. 

Holders of dollar bonds also include Amundi SA, Banco BTG Pactual SA’s asset-management unit, Verde Asset Management and Vontobel Asset Management. 

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