SanCor Cooperativas Unidas Ltda., a key player in Argentina’s dairy sector, has decided to file for preventive bankruptcy following an extraordinary assembly held on February 20. The decision aims to stabilize its finances amid mounting economic challenges.
SanCor Cooperativas Unidas Ltd., a major dairy cooperative in Argentina, has officially moved to file for preventive bankruptcy following an extraordinary assembly held on February 20. The cooperative, which has played a vital role in Argentina’s dairy industry, took this step to safeguard its financial stability amid ongoing economic pressures.
During the assembly, SanCor’s management proposed entering preventive bankruptcy proceedings under Article 6 of Law 24.522, which governs insolvency and restructuring in Argentina. The cooperative’s members unanimously approved the measure, recognizing it as a crucial move to restructure debts and sustain operations in challenging market conditions.
SanCor, once a powerhouse in Argentina’s dairy sector, has struggled in recent years due to financial instability, declining revenues, and economic downturns impacting the industry. The decision to enter preventive bankruptcy is seen as a proactive effort to regain stability, protect its workforce, and ensure the continued supply of dairy products in the region.
Industry analysts note that this move could provide the cooperative with much-needed relief, enabling it to renegotiate debts and restructure its business model. However, concerns remain about how this will impact suppliers, employees, and Argentina’s broader dairy market.
The outcome of SanCor’s financial restructuring will be closely watched, as it will not only determine the future of one of Argentina’s largest dairy cooperatives but also influence the stability of the nation’s dairy industry as a whole.
