Top food firm Molino Cañuelas files for bankruptcy
Molino Cañuelas, one of Argentina's leading food producers,
has filed for the local equivalent of Chapter 11 after years of disputes with
creditors.
Molca, as the company is known in Argentina, could not reach
an agreement with creditor financial institutions, so it was forced to request
the opening of bankruptcy proceedings, the firm reported in a statement sent by
email via an outsourced public relations firm.
The company owes US$1.4 billion to domestic and foreign
debtors, including ING Groep NV and Rabobank UA, a spokeswoman confirmed.
Molca sought a consensual settlement out of court, and at
one point the president, Aldo Navilli, even put up a regional golf course as
collateral.
Molca, which employs 3,000 workers in 15 plants and is one
of the main flour exporters in the region, is now trying to use the procedure
to protect its assets, and intends to maintain normal operations while the
process develops.
In the statement, the company attributes its situation to
years of economic problems in Argentina, including the devaluation of the
currency that also caused the collapse of the giant soy exporter Vicentin SAIC.
The company said the move would allow it to enter a
"preventative insolvency proceedings" as it seeks to "protect
its assets and jobs."
Vicentin's own bankruptcy process continues after a default in
December 2019, with the family property poised to hand over a majority stake to
a consortium led by Glencore's Viterra Inc, if creditors agree.
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