SanCor Seeks Strategic Investment to Secure its Future
Source: dairynews.today
The struggling dairy firm SanCor is in discussions to increase activity and possibly attract investors like Adecoagro to mitigate its financial troubles.
SanCor, an Argentine dairy company currently under bankruptcy protection, is actively exploring options to sustain its operations while seeking potential investors. Recent discussions, albeit without firm conclusions, have been held with Adecoagro, a leading agribusiness group, and representatives of SanCor. The focus is on understanding the context of the company's challenges, revolving primarily around a massive debt reportedly nearing $400 million.
A critical date looms on June 13th, when the exact debt figures will be revealed due to extended deadlines for creditor claims. SanCor's current production is far below its historical capacity, processing only 50,000 to 60,000 liters of milk per day compared to 4 million liters daily during its peak in the 1980s. This downturn has also impacted its workforce, reducing numbers from 1,350 to 850 due to voluntary retirements, layoffs, and attritions. In response, the firm, supported by provincial labor authorities, is considering options like contract manufacturing models akin to those used by the cereal company Vicentin.
The Minister of Labor Roald Báscolo emphasized efforts to prevent the collapse of SanCor, confirming discussions are oriented towards avoiding insolvency. Potential investors face a decision regarding whether to invest in SanCor as a cooperative or to push for its transformation into a corporation.
A critical date looms on June 13th, when the exact debt figures will be revealed due to extended deadlines for creditor claims. SanCor's current production is far below its historical capacity, processing only 50,000 to 60,000 liters of milk per day compared to 4 million liters daily during its peak in the 1980s. This downturn has also impacted its workforce, reducing numbers from 1,350 to 850 due to voluntary retirements, layoffs, and attritions. In response, the firm, supported by provincial labor authorities, is considering options like contract manufacturing models akin to those used by the cereal company Vicentin.
The Minister of Labor Roald Báscolo emphasized efforts to prevent the collapse of SanCor, confirming discussions are oriented towards avoiding insolvency. Potential investors face a decision regarding whether to invest in SanCor as a cooperative or to push for its transformation into a corporation.
