Cotar's Future Hinges on Worker Cooperative's Bid Amid Bankruptcy
Cotar, a renowned dairy company established in 1935, is at a pivotal point in its history as it undergoes bankruptcy proceedings. The Cooperativa Nueva Cotar de la Gente, consisting of former employees, has made an offer to purchase the company's assets. This bid is currently under review by the trustees, and a judicial decision will ultimately decide whether the company continues under the cooperative's management or proceeds with asset liquidation.
The cooperative, which has been maintaining operations at the Rosario plant since 2022, employs 120 workers and produces between 150,000 and 200,000 liters of milk daily. This production level accounts for approximately 60% of the plant's installed capacity. The acquisition proposal includes purchasing the industrial plant, equipment, and commercial brands, aiming to establish a long-term productive project.
The bid leverages a mechanism from the Bankruptcy and Insolvency Law that allows cooperatives formed by former employees to use owed labor credits as part of the payment for acquiring the productive unit. Additionally, the cooperative has incorporated credits ceded by other creditors to strengthen its economic proposal and enhance its chances of securing the assets.
Cotar currently produces a variety of dairy products, including milk, yogurts, cream, butter, and dairy desserts. The company's history includes various restructuring phases, such as a 1998 agreement with SanCor, which resulted in the transfer of its brands to Establecimientos Lácteos San Marco while retaining the ability to sell products under other brands and produce on a contract basis for the cooperative.
In 2000, Cotar entered preventive bankruptcy due to financial difficulties, reaching an agreement with creditors the following year. The outcome of the current judicial decision is set against a backdrop of significant changes within the Argentine dairy industry, which has recently seen acquisitions and sales involving companies like Saputo Argentina, San Ignacio, and SanCor.
The resolution regarding Cotar will be a critical development in determining whether one of Santa Fe's historic dairy companies will commence a new chapter under the administration of its workers or whether the liquidation process will move forward.
