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Granja Tres Arroyos seeks debt deal amid plant closure and union talks
🇦🇷 Argentina /Economy & Trade

Granja Tres Arroyos seeks debt deal amid plant closure and union talks

From La Nación · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Under investigation
  • Granja Tres Arroyos closed its plant in Concepción del Uruguay, Entre Ríos, impacting 700 employees, while negotiating a US$350 million debt restructuring.
  • The provincial government is mediating talks between the company and unions, aiming for solutions for both the company's finances and its employees.
  • The company cited ongoing labor conflicts and a complex economic context, including international market closures due to avian flu, as reasons for the closure.

Granja Tres Arroyos announced the indefinite closure of its La China plant in Concepción del Uruguay, Entre Ríos, affecting 700 employees. The provincial government has intervened, calling for conciliation hearings between the company and involved unions, including the Food Industry Workers' Union (STIA) and the Meat Union.

Simultaneously, the company is undergoing a restructuring of approximately US$350 million in liabilities, working with the consultancy Valo Columbus. Creditors have been presented with a proposal that includes potential debt write-offs of up to 75% and payment terms extending up to seven years. The proposal outlines three tranches for debt resolution: commercial, financial, and banking, with varying levels of write-offs.

The axis is to resolve the commercial, financial, and bank debt, divided into three tranches: the first is where the creditor cedes up to 75% of their credit, the second tranche reduces the write-off by 50%, and only in the third tranche is no write-off implemented.

— SourcesExplaining the proposed debt restructuring plan for Granja Tres Arroyos.

In a statement, Granja Tres Arroyos attributed the plant closure to "constant union conflicts that paralyzed its operations and caused a break in the poultry production chain in the region." The company also cited a challenging economic environment for the industry and the firm itself. Meetings have been held with the governor of Entre Ríos, Rogelio Frigerio, to explore alternatives for resuming operations.

Provincial officials, including the Minister of Economic Development Guillermo Bernaudo, expressed the government's intention to assist and mediate for the plant's reopening due to its regional importance. The company also informed provincial authorities about its delicate financial situation, exacerbated by the closure of international markets due to avian flu concerns. Operational difficulties stemming from union conflicts at the Concepción del Uruguay plant further complicated the situation, leading the company to enter a preventive crisis procedure and financial reorganization.

the constant union conflicts that paralyzed its operations and caused a break in the poultry production chain in the region.

— Granja Tres ArroyosThe company's stated reason for closing its plant in Entre Ríos.
DistantNews Editorial

Originally published by La Nación in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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