Granja Tres Arroyos needs $8 million to reopen plant amid financial crisis

Argentine poultry producer Granja Tres Arroyos (GTA) is grappling with a severe financial crisis, attempting a complex restructuring of approximately $350 million in liabilities. The company is negotiating with creditors for significant debt relief, including potential haircuts of up to 75% and extended payment terms of up to seven years, according to sources familiar with the process.

Efforts to reopen the company's La China plant in Concepción del Uruguay have hit a roadblock. GTA estimates it needs $8 million to partially restart operations and process 80,000 chickens, with a further $8 million required to reach previous production levels. Union leaders express skepticism about the company's proposal, citing uncertainty regarding the timeline for securing these funds and the gradual nature of potential staff rehiring.

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Unfortunately, we do not have the best news. Granja Tres Arroyos presented something that seems unviable to us.

Recent meetings in Paraná between GTA, food industry unions (STIA), and the Entre Ríos provincial government failed to yield concrete progress. The parties remain divided on a path forward, increasing uncertainty for the company's workers, integrated producers, and suppliers. While basic support like food assistance, personal subsidies, and social energy tariffs have been agreed upon for affected employees, a sustainable solution for employment and wages remains elusive. The union is scheduled to meet urgently in Buenos Aires to discuss the situation.

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They need US$8 million and 60 days to start processing 80,000 chickens.