In a recent statement, the SanCor dairy cooperative has officially announced its decision to apply for preventive bankruptcy protection. The company, which has been a benchmark in the dairy industry for decades, cites economic and financial difficulties as the main reasons behind this measure.
SanCor's history dates back to the late 1930s when it was created as a nonprofit cooperative to ensure a fair price for farmers in the dairy basins of Santa Fe and Córdoba. However, over the years, the company has faced various challenges that have led it to its current difficult situation.
According to the statement, SanCor went through a deep crisis in 2017, which led it to initiate a restructuring process that included layoffs and the sale of several productive, commercial, and administrative facilities. Despite these efforts, the company continues to struggle to find a solution to its financial problems.
Among the causes of the crisis, a considerable debt, estimated at around US$ 400 million, mainly with the tax authorities and in the labor sector, is mentioned. Despite having explored different alternatives and held negotiations with business groups interested in its recovery, SanCor has not managed to overcome its financial difficulties.
Loss of market share, the transfer of profitable businesses to other companies, and a drastic reduction in its production volume are some of the symptoms of the crisis that SanCor has faced in recent years. With the filing for preventive bankruptcy protection, the cooperative seeks to resolve its debts and other circumstances that could hinder future negotiations.
SanCor's decision to turn to the courts is a crucial step in its search for a solution to its financial problems. Despite the challenges it faces, the company has expressed its intention to continue dialoguing with potential investors and has made significant progress in this regard in the past. However, SanCor's future will largely depend on the decisions made by the courts in the context of the creditor proceedings.