MercoPress. South Atlantic News Agency

Argentine tax office requests arrest of US company directors for 'fraudulent bankrupcy'

All the data on the 'fraudulent' bankruptcy has been given to the CNV which this week will be presenting them to the US SEC, said Echegaray

Argentina's tax office, AFIP, Federal Public Incomes Administration president Ricardo Echegaray announced it had requested the arrest of the Donnelley board of directors for what he called “playing a trick and inventing a fraudulent bankruptcy” for the printing plant located in Buenos Aires province.

 Echegaray also revealed that the National Values Commission (CNV) financial watchdog would present to its US counterpart details of the company's request. The bankruptcy plea filed by the company's Argentina branch threatens 400 jobs.

“All the data that we have gathered and handed over to the courts, to declare this bankruptcy 'fraudulent' and request the arrest of company directors, have been given to the CNV which this week will be presenting them to the Securities and Exchange Commission,” he affirmed.

Echegaray signaled that according to the US Securities and Exchange Commission, the parent company RR Donnelley & Sons Company has as principal shareholders the investment funds Blackrock, Capital World Investors, Tehe Vanguard Group INC and State Street Corporation.

Furthermore, the tax agency chief alleged that those groups were partners with Elliott Management, run by Singer, and that they also participate in energy interests.

“The company played a trick, fraudulently presenting an untimely bankruptcy and we hope the courts will make a decision as soon as possible over its continuity because the business is in good health,” Echegaray explained, while criticizing the rapid response of judges in confirming bankruptcy.

“Bankruptcy was decided that very same time and we are still waiting for a decision over the company's productive continuance, requested by the AFIP, unions and the workers,” he underlined, while ruling out the possibility of the state taking over the enterprise.