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Montevideo, May 12th 2021 - 23:42 UTC

 

 

Argentina's Vicentin soy giant claims government never informed it of taking over the group

Tuesday, June 9th 2020 - 07:40 UTC
Full article 3 comments
Vicentin said that since December 2019 the group has been exploring different alternatives to finance its debt and to recover the level of activity Vicentin said that since December 2019 the group has been exploring different alternatives to finance its debt and to recover the level of activity

Late Monday the Vicentin soy crushing giant group, which Argentine president Alberto Fernandez had previously announced it would take over to ensure jobs and food sovereignty, made public a release denying any job losses and revealing it was in talks with interested parties to overcome the current under administration situation.

Vicentin said that since December 2019 the group has been exploring different alternatives to finance its debt and to recover the level of activity, which under no circumstances is limited to the last four years, but rather to decades of standing and sustained investment efforts. Vicentin has 90 years of history in Argentina, 90 years always complying with our workers, our suppliers and our clients.

Assets of the company are very significant and intact. All those involved in this business know this very well. During the process we have not left a single worker redundant, and although not all of them have been able to work because of the pandemic, they have all been paid as it must be.

Among the alternatives in consideration have always been the sale of assets and the possibility of an association with Argentine companies. Among those options YPF Agro was also contemplated. We all know what YPF represents for Argentina and the hydrocarbons business, and also its very important link to Argentine farming, thus we never at no moment did we discard that it could play an important role in the future of Vicentin.

The path chosen by government fills us of uncertainty and concern. We only heard about the (take over) decision through the media and we are making the necessary consultations to understand the characteristics and depth of the measures announced. Finally we insist on the legitimacy of protecting the rights of an Argentine company and its stake holders, a family enterprise, and from the farm heartland of the country, which complies with the current legal framework, is undergoing a preventive administration scheme and which has repeatedly expressed its willingness to honor all commitments undertaken.

 

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  • Chicureo

    Yes, a clear indication of how Peronists continue to destroy its country's wealth.
    To borrow the thoughts of the exceptionally charming and perceptive Bianca Fernet explaining why idiotic Peronist sycophants like Enrique Massot are incapable of accepting reality.

    When Macri’s administration came to Wall Street promising change and reform, he believed himself to be capable of engineering an economic about face. But it’s not the economy, stupid, it’s the culture. Argentina’s proclivity to over-borrow, over-spend, and then act like bewildered victims of some complex plot has nothing to do with the economic theory. All the austerity in the world is not going to magically transform Argentines into logical decision makers.

    So to the IMF and Wall Street, let me offer you a jewel of wisdom. Think of the current administration and Alberto Fernandez as your versions of Fede, Martin, and Nico. When he says he loves you will pay back loans and not enact currency controls, he’s not lying – exactly. He’s simply Argentine, and thus bewilderingly capable of holding multiple opposing and incompatible ideas in his head, and simultaneously believing they are all true.

    Argentina is on an inevitable path back to currency controls. Argentina will never dollarize. And Nico does love you, he just loves himself more. Just remember that Argentine promises – like a juicy cut of steak – are best consumed with a healthy pinch of salt.

    It heavily snowed in the Andes last night. I will be skiing with my entire extended family at Valle Nevado on July 3rd! Life is good and the demand for superfood avocados continues to increase during these troubled times.

    Currently, I don't have very much concern about that Chile's Harvard educated self-made billionaire President will lead my country through this crisis. Chile has an outstanding world credit rating and a strong independent central bank.

    Jun 12th, 2020 - 08:55 pm 0
  • Enrique Massot

    Chicureo, as per one of his last lectures, appears to be missing former Argentine president Mauricio Macri:

    “Macri...believed himself to be capable of engineering an economic about face.”

    He couldn't do it, according to Chicureo, because of “Argentina’s proclivity to over-borrow, over-spend, and then act like bewildered victims.”

    I don't quite get Chicureo's reasoning. Was Macri the president of Argentina from 2015 to 2019? Or had I a bad dream?

    Jokes aside, Macri took office in December 2015, former president Cristina Kirchner had left a foreign debt equivalent to 25 per cent of the country's GDP. As a result, the country had lots of room to take in loans. Which Macri did, fast and furious.

    When he ended his term last December, Argentina's foreign debt equated one year's worth of the country's annual GDP. Repayments have already began, fast and furious.

    Economy minister Martin Guzman is negotiating repayment delays so that the country can restart its economy and pay back its dues.

    Remarkably, Peronist governments have been the least foreign debt takers. During Juan Peron's second term in office ended by an army's bloody coup in September 1955, the country became creditor for the first time in history.

    In 1952, the Peronist government fully paid off the external debt; by the end of the year, Argentina became creditor of US$ 5 billion.

    No matter. Pinochet apologist Chicureo will tell you -- without blinking -- how good current Harvard-educated Chilean president Sebastián Piñera is and how bad Argentina's current president Alberto Fernández is.

    Jun 13th, 2020 - 10:26 pm 0
  • Enrique Massot

    A good step by Alberto Fernandez that aims to give certainty to about 6,000 employees and 2,600 farmers dealing with Vicentin and who have not been paid for soy they handed in to Vicentin.

    Vicentin grew continuously during the four-year term of former president Mauricio Macri, but entered an unexplained decline in the last months of that government.

    In October 2019, Vicentin stopped paying its debt installments with the Banco Nación and other creditors. In spite of this, the company still received another 95 million dollars in credits from the Nacion in November.

    The company declared default on about $1.5 billion US in February.

    Jun 10th, 2020 - 05:21 am -1
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