Debt ridden Argentine company Vicentin no longer to be nationalized by federal government

After announcing its intention to nationalize oilseed processor Vicentin two weeks ago as a plan to rescue the heavily indebted company, Argentine President Alberto Fernandez has been facing a series of protests from Argentine companies.  This has forced him to present a new proposal in which the government of the province of Santa Fé will assume the responsibilities of the company to avoid nationalization by the federal government. “For us, expropriation is a tool to recover the company and not an end in itself. If there is an alternative plan that achieves the same objective, I will be happy to hear and analyze it ”, said Fernandez in an interview with a local radio.

Under the new proposal, control of Vicentin would be achieved through provincial channels, rather than federal nationalization, which means that Fernandez would not need approval for the Congressional plan, where he does not have a majority.  The plan for the province of Santa Fé occurred because heavily agricultural municipalities fear that other nationalization processes will take place with the center-left government.  Vicentin owes approximately US$350 million to grain suppliers, while the company’s overall debt, including local and foreign banks, is estimated at US$1.5 billion.

Source: Valor Econômico

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