Uncertainty Looms Over the Fate of SanCor's 430,000 Kilos of Cheese

On February 25, 2025, questions arise as an auction is scheduled to determine the fate of more than 430,000 kilos of cheese from SanCor Cooperativas Unidas Limitada, an Argentine dairy cooperative. A creditor, IIG Structured Trade Finance Fund Ltd, has initiated this action to recover debts, posing challenges for the struggling cooperative currently under creditor protection.

Despite a planned auction set for the coming Friday, sector insiders suggest that a judicial order may prevent the sale. The appointed judge in SanCor's bankruptcy proceedings has reportedly issued a suspension on legal actions against the company, which includes the auction of the cheeses located at SanCor facilities in La Carlota, Córdoba, and Gálvez, Santa Fe.

The cooperative's financial woes continue to deepen, with daily milk intake drastically reduced, impacting production. SanCor's substantial debts, amounting to $250 million, potentially threaten its survival. Some stakeholders propose restructuring the cooperative under a 'recovered company' model, which would see former owners take control to restore operations—a complex process expected to take at least five years.