Argentina’s SanCor Dairy Faces Imminent Bankruptcy as Creditors Mobilize
Source: dairynews.today
Argentine dairy cooperative SanCor appears headed for bankruptcy, with mounting financial troubles and no response from company leadership, according to people familiar with the matter.
Creditors are reportedly forming a unified consortium to strengthen their bargaining power, while SanCor continues to face delays in salary and severance payments, unpaid tax obligations, and unresolved pension contributions. Several creditors are preparing to initiate formal bankruptcy proceedings in court.
Despite SanCor’s fall, there has been little impact on the distribution of Argentina’s competitive dairy market. Sources close to the matter say the company is unlikely to resist a bankruptcy filing, as prospects for a financial rescue have all but disappeared.
Parties interested in SanCor’s key assets have indicated they will wait for a court-ordered auction to pursue acquisitions. Preliminary plans for asset bids are already underway.
The Carlota plant is expected to attract the most interest, while facilities in Sunchales and Gálvez appear to have only one potential buyer each. Single bids are also anticipated for assets in San Guillermo, Balnearia, and Devoto.
Several of these companies previously engaged in negotiations with SanCor to acquire assets, but failed to reach agreements. Industry sources now suggest they could secure assets at lower prices through judicial sales.
Workers—both current and former—as well as dairy producers owed for months of deliveries, are expected to be among the most affected. Legal experts warn they may be last in line for any distributions from the asset liquidation.
SanCor’s debt is estimated at over $400 million. Analysts say the sale of the cooperative’s assets is unlikely to recover more than a fraction of that total.
Despite SanCor’s fall, there has been little impact on the distribution of Argentina’s competitive dairy market. Sources close to the matter say the company is unlikely to resist a bankruptcy filing, as prospects for a financial rescue have all but disappeared.
Parties interested in SanCor’s key assets have indicated they will wait for a court-ordered auction to pursue acquisitions. Preliminary plans for asset bids are already underway.
The Carlota plant is expected to attract the most interest, while facilities in Sunchales and Gálvez appear to have only one potential buyer each. Single bids are also anticipated for assets in San Guillermo, Balnearia, and Devoto.
Several of these companies previously engaged in negotiations with SanCor to acquire assets, but failed to reach agreements. Industry sources now suggest they could secure assets at lower prices through judicial sales.
Workers—both current and former—as well as dairy producers owed for months of deliveries, are expected to be among the most affected. Legal experts warn they may be last in line for any distributions from the asset liquidation.
SanCor’s debt is estimated at over $400 million. Analysts say the sale of the cooperative’s assets is unlikely to recover more than a fraction of that total.
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