The company indicated that the judicial approval is expected to be formalized soon. In this way, the company would close a critical chapter in its financial history.
Cañuelas Millone of the main food companies in Argentina, announced that it had reached the necessary majorities for the approval of its bankruptcy proposal within the framework of its financial restructuring process. With a support of 89.07% of unsecured creditorsthe company reached a key agreement to restructure a debt of US$1,290 millionmarking a significant step in its preventive competition.
The agreement includes three payment options: cash, short-term and long-term. The presentation of these majorities was carried out within the exclusivity period stipulated by law, and now the company awaits judicial approval to make the process official.
This milestone marks a significant advance in the financial situation of Molino Cañuelas, which in September 2021 had requested bankruptcy proceedings after facing difficulties in restructuring a debt that initially exceeded US$1.3 billion.. As the company explained at the time, these difficulties were due to the devaluation of the Argentine peso and changes in international interest rates, which complicated its financial structure. In addition, the debt was linked to important investments, such as the purchase of Cargill’s local flour business for US$736 million and the construction of a plant in Spegazzini, Ezeiza district, for frozen foods, which required more than US$100 million. .
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The truth is that the default of Molino Cañuelas with banks and financial entities dates back to mid-2018. At that time, the main wheat processor in Argentina was forced to take a u-turn in its financial strategy and thus left behind the possibility of listing on the local stock market and in New York. And he hired the financial advisory firm Lazard. After months of negotiations, that project did not obtain the approval of all its creditors. Even Banco Macro formally asked him for bankruptcy.
Among its main creditors are renowned entities such as Finance Corporation, Banco Nación, Natixis New York Bank, Cargill, Banco de la Provincia de Buenos Aires (Bapro) and BAF Latam Credit Funds NV, among other international and Argentine entities.
One of the keys to the default is that The company never stopped paying its raw material suppliers and employees, so all its production units continued to operate normally. It didn’t even move forward with the sale of assets.
In a statement, Molino Cañuelas highlighted that this agreement reaffirms its commitment to employees, customers, suppliers, government agencies and, especially, to consumers who have continued to trust its products. The company also thanked the creditors for the support received, as well as the technical teams, advisors and shareholders who worked intensely to achieve this result.
The financial restructuring process of Molino Cañuelas not only seeks to balance its finances, but also to guarantee its long-term sustainability. Furthermore, the recently approved agreement could become an emblematic case of how a national company faces and overcomes complex challenges in an adverse economic context.
With 20 industrial plants in Argentina and the region, 3,500 direct employees and more than 20 leading brands in the market, including Cañuelas, Pureza, 9 de Oro and Mamá Cocina, Molino Cañuelas is positioned as a key player in the food industry.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
