The company Vicentín is in a difficult financial situation and could face liquidation, according to unions. The company requested preventive creditor proceedings in February 2020 due to its large debts, especially with Banco Nación. Although in March of last year the payment proposal to creditors was approved, the company Commodities raised an objection that was accepted by the provincial court.
In the rejection of Vicentín's payment proposal, it was noted that it established an initial payment for each unsecured creditor without specifying the total amount of debts. The unions are concerned that around 3,000 jobs are at stake if the company fails to overcome this situation. Moreover, uncertainty is increasing as the company has expressed doubts about the possibility of paying February salaries.
The ruling of the Santa Fe court now allows third parties to offer a bailout to the company and present alternatives to Vicentín's original payment plan. Among the interested parties for this possible rescue are Viterra, Bunge, and ACA. The situation has worsened for the company after doubts were cast on the payment of its employees' salaries and the Supreme Court of Justice of Santa Fe rejected the approval of the creditors' competition.
Given this complicated scenario, the unions have stated that they will not allow job losses or accept wage cuts. The San Lorenzo Oil Workers and Employees Union and the Federation of Workers of the Argentine Oilseed Industrial Complex have made their stance clear to defend jobs. The survival of Vicentín seems to largely depend on the decisions made in the upcoming stages of this legal process.
