SanCor's Crisis: Supported Solely by Creditors
Sourse: dairynews.today
SanCor is on the brink of collapse, sustained only by its creditors, warns lawyer Aldo Regali.
The longstanding dairy cooperative SanCor is navigating one of the most critical phases in its history with significant financial distress. Recent developments see SanCor's operations almost at a standstill, lacking raw materials and operational capital, burdened by debts exceeding $400 million. Aldo Regali, representing major creditors, highlights the dismal state of affairs, citing prolonged mismanagement since 2017, leading to severe production halts. With 90% of operations suspended, SanCor's continuity hinges on creditor negotiations.
Crucial creditor entities include IGG, BF Capital, and SanCor Seguros. Efforts are being directed at resolving the massive financial obligations, starting with IGG in hopes of unlocking substantial portions of the debt. One of the proposed strategies to generate revenue includes leasing the SanCor brand for products outside their manufacturing scope.
Despite these efforts, the path forward appears fraught with challenges, emphasizing creditors' pivotal role in the company’s survival, more out of necessity than merit. The scenario paints a bleak picture for over 60 retired employees seeking financial stability, amid ongoing legal complexities and uncertainty surrounding SanCor's leadership and strategy.
Crucial creditor entities include IGG, BF Capital, and SanCor Seguros. Efforts are being directed at resolving the massive financial obligations, starting with IGG in hopes of unlocking substantial portions of the debt. One of the proposed strategies to generate revenue includes leasing the SanCor brand for products outside their manufacturing scope.
Despite these efforts, the path forward appears fraught with challenges, emphasizing creditors' pivotal role in the company’s survival, more out of necessity than merit. The scenario paints a bleak picture for over 60 retired employees seeking financial stability, amid ongoing legal complexities and uncertainty surrounding SanCor's leadership and strategy.
