Conexión Ganadera Crisis: Proposed Agreement to Distribute US$35 Million from Cattle Sales

A critical juncture has been reached in the Conexión Ganadera crisis, as a proposed agreement seeks to equitably distribute US$35 million derived from the sale of available cattle. This initiative, spearheaded by the Commercial Defense League (Lideco) and supported by the trustee Alfredo Ciavattone, aims to provide a resolution for investors who have been caught in the company's financial turmoil.

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the cattle that exists, is it some people's or everyone's?

The core of the proposed agreement lies in addressing the disparity between investors who had cattle registered in their name and those who did not. According to Fernando Cabrera, manager of Lideco's Legal Services, investors without registered cattle will receive 5% of their credit value. In contrast, those who owned cattle will be compensated at 33% of the sale value of the cattle actually found by the trustee. For the cattle that were unaccounted for, all investors will receive a 5% compensation.

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the proposal for an agreement sought the most equitable way to distribute the US$35 million that was obtained from the sale of the available cattle.

This proposed settlement offers a swift resolution, with investors potentially receiving their funds within 60 days, thereby avoiding prolonged and costly legal battles. However, the agreement's success hinges on widespread creditor approval, with at least 85% of creditors needing to subscribe by May 12. The outcome of this vote will determine whether investors can recover a portion of their investments or face further protracted legal proceedings in the Bankruptcy Court.

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those who did not have cattle in their name will collect 5% of the value of their credit (that is, of what they invested). Those who had their own cattle, will collect 33% of the average value of the cattle effectively found by the trustee.