Verónica Dairy in Crisis: Plants Remain Paralyzed and Debt Grows
Sourse: dairynews.today
Verónica Dairy faces deepening financial difficulties, with halted operations, unpaid salaries, and no recovery plan.
The Argentine company Verónica Dairy has failed to meet its financial obligations, exacerbating its crisis. The dairy’s plants in Clason, Lehmann, and Suardi remain non-operational four weeks into labor actions with no signs of resolution. Despite business promises to ease tensions, the company did not meet payroll obligations or resume milk supply, nor has it presented a viable recovery plan. Workers experienced delays in wage payments, with only April salaries partially covered and no clear schedule for May wages.
The critical rupture with milk suppliers adds to significant challenges, as they halted crude milk shipments due to non-payments and uncertainty over payment chains. Additionally, the company’s financial health is troubled, with over ARS 1.3 billion in rejected checks, showcasing severe liquidity issues and loss of financial credibility. The company’s ongoing debt is around ARS 8 billion, with leading creditors like Banco Nación, Galicia, and Santander, yet lacks operational liquidity to sustain production.
Verónica Dairy's situation reflects an ongoing pattern of financial distress, marked by previous crisis mitigation efforts but now facing its most complex challenge, dropping from a daily processing of 700,000 liters to merely 200,000. As the executive team remains publicly silent, employees find themselves in a holding pattern, with stalled operations furthering fears of restructuring or default.
The critical rupture with milk suppliers adds to significant challenges, as they halted crude milk shipments due to non-payments and uncertainty over payment chains. Additionally, the company’s financial health is troubled, with over ARS 1.3 billion in rejected checks, showcasing severe liquidity issues and loss of financial credibility. The company’s ongoing debt is around ARS 8 billion, with leading creditors like Banco Nación, Galicia, and Santander, yet lacks operational liquidity to sustain production.
Verónica Dairy's situation reflects an ongoing pattern of financial distress, marked by previous crisis mitigation efforts but now facing its most complex challenge, dropping from a daily processing of 700,000 liters to merely 200,000. As the executive team remains publicly silent, employees find themselves in a holding pattern, with stalled operations furthering fears of restructuring or default.
