SanCor's Preventive Insolvency: Risks and Implications
Source: dairynews.today
SanCor, a historic Argentine dairy cooperative, has entered preventive insolvency to restructure its debts and avoid bankruptcy.
SanCor Cooperativas Unidas Limitada, once a leading dairy company in Argentina, has been facing financial and institutional deterioration for years, leading to its recent request for preventive insolvency filed on February 3, 2025.
The legal implications and the process are vast, involving the appointment of three independent trustees to coordinate due to the complexity. These trustees will assist the judicial proceedings by creating reports on fund availability and ensuring the verification of credits.
Mariano Prono explained the urgent need for a collaborative trustee approach due to the case's scale, while Josefina Prono indicated that the preventive filing aims to allow debt restructuring without immediate bankruptcy, safeguarding jobs and company value.
The risk of bankruptcy remains if SanCor fails to establish viable restructuring plans or agreements with creditors. If the conditions are unmet, liquidation to satisfy debts might be unavoidable.
