In the midst of the Creditors Preventive Contest process, Sancor avoided the auction of more than 400 thousand kilos of cheese that was going to be carried out this Friday. This was ordered by the judge Guillermo Adrián Vales head of the Civil and Commercial Court of the 4th. Rafaela nomination, Santa Fe.
The magistrate resolution determined a series of measures that began the preventive contest of creditors on February 14. And one of them was not to give rise to any judicial action against dairy to not benefit any of the creditors.
The auction had been promoted by the Iig Structured Trade Finance Fund Ltd. investment fund, one of the cooperative creditors, who decided to execute the guarantee of his credit. He contemplated the auction of 436,922 kilos of cheese (268,672 kilos of hard pasta cheese and 168,250 kilos of semi -cheese), with a base price of US $ million.
The most recent antecedent of this dispute dates from July 2024, when also The company managed to avoid even greater auctionof 700 thousand kilos valued at US $ 5 million, after reaching an agreement with the same creditor
Sancor was one of the leading companies in the sector, with more than 1.2 million liters of milk processed per day. However, today it operates about 200,000 liters per day ..
The accumulation of debts with suppliers, banks and the Treasury diminished their competitiveness. The market mentions obligations that would amount to US $ 400 million.
The restructuring process initiated in 2017 failed to reverse the crisis. And the possibility of a salvage through the incorporation of external capitals never concretized.
Opening of the Creditors Preventive Contest
On February 14, Judge Guillermo Adrián Vales, head of the Civil and Commercial Court of the 4th. Nomination of Rafaela, Santa Fe, declared himself competent to carry out the Preventive Contest of Creditors of Sancor.
Through its resolution, it determined a series of measures that begin the judicial instance, among which are:
-The classification as “Great Contest – Category A”;
-The constitution of a plural union to understand the development of the process;
-The fixation of May 29, 2025 as a deadline for the presentation of credits verification orders and on July 1, 2025 as a deadline for possible challenges;
-Adden the suspension of procedures of judicial contentious processes that have prior origin to February 3, 2025;
-Adden the suspension of interruptions of services for debts contracted before February 3, 2025;
-Constitutions the “Provisional Committee of Creditors”;
-Determine the continuity of the company in the registration of importers and exporters of the Argentine Republic.
In a section, called “words aimed at the population”, the judge Vales clarifies the purpose of the process now initiated. There he explains that it was objectively verified that the cooperative “cannot deal with the obligations that can be demanded by their creditors”.
He continues to say: “During this process then, we will try to find solutions together with the creditors to avoid bankruptcy and this is so, because the main objective of the trial is Protect the interest of creditors and maintain the operation of the company which will help conserve work sources. ”
Then he adds: “Taking into account the effect that this state of the debtor causes in all the creditors -who are entitled to the protection of their credits -, the objective to be fulfilled with those who will work in the process, will be to try to achieve an agreement that satisfies the debts and thus allow the company to be recomposed of this crisis.”