The leaders of Vicentin rejected the statements of the president, Alberto Fernandez, regarding the possibility of the State taking control of the cereal company. Now that the Supreme Court of Santa Fe has suspended the bankruptcy process and decided to focus on analyzing the case, the president pointed out that the conditions are more favorable for a cramdown.
The cereal company, which took million-dollar loans during the government of Mauricio Macri and which a week after the end of Cambiemos’ term, declared itself in default, returned to the center of the scene after the president’s statements.
In a report to this newspaper, Fernandez spoke of the need to end monopolistic practices in food markets in the face of indiscriminate price increases. This is how he declared himself in favor of the possibility of the State having “a witness company to order the market” in the food field. The imprint is born before the decision of the Supreme Court of Santa Fe to displace the judge of the bankruptcy of Vicentin, Fabián Lorenzini. Fernandez expressed that now there is “a more favorable scenario” than the one that existed at the beginning of the process.
The members of the agro-export company Vicentin issued a statement stating that: “Vicentin is not and cannot be a witness company that orders the grain market, since Vicentin is just a (large) milling company that transforms grains into oil and flour. . Its participation before the presentation in the contest never reached 15 percent of the sector”
consulted by Page|12Carlos Del Frade, deputy from the province of Santa Fe, explained that “it is essential that the national government take Vicentin as a national asset company, since foreign trade in grains continues to be where the largest amount of foreign currency enters and since Vicentin, in recent years, had positioned itself as the leading grain exporting company, and they deliberately lie about this to lower the price for the government’s interest in recovering the initiative in Vicentin.”
Regarding the statement issued by the cereal company’s board of directors, the deputy said: “The document from the Vicentin board of directors once again shows the need for this business group to follow the creditor preventive process as it has been until now with absolute ease of part of Judge Lorenzini and continues to repudiate any presence of the national State, not only because of the validity of Vicentin, but above all things, to unveil the mystery of the flight of 791 million dollars between August 219 and January 2020 from who never speak.”
“It is a statement to defend everything that has to do with the darkness of the process of cessation of payments, emptying and escape that Vicentin has produced, in recent years and during the government of Mauricio Macri above all things. It is a defensive attitude for the directors who are already prosecuted and accused of crimes of various scams to continue to maintain their freedom, “he remarked.
Faced with incessant inflation and behaviors of accumulation and exploitation by the Argentine business community, the president spoke about the role of the State. “There is a sector of the Argentine business community that does not have any criteria of solidarity with the community where it operates. And this is very serious”. “They are companies that have had extraordinary results in recent years. And they don’t need to raise prices the way they do to win. However, they do. That’s where the second discussion begins: what is the State doing to stop it,” he added. President.
It is here when the possibility of nationalizing Vicentin comes into play. Fernandez mentioned in the interview that the government is still “working on the cramdown alternative and now there is a scenario where, perhaps, we can do something. I’m not saying I’m sure, but we do have a more favorable scenario than that one”.
The cramdown is a debt solution proposal made by the main creditors, in this case Banco Nación, which would allow creditors or another external actor to formulate a proposal to take control.
The president mentioned that the problem when thinking about the conflicts regarding the cereal company “is that they turn Vicentin into an ideological problem. And it is not an ideological problem, it is a problem of opportunity. I am convinced that what we have to guarantee is to put an end to these oligopolies, monopolies, and when these systems exist, as in the case of the 7 or 8 cereal companies that exist in Argentina, if the State had a cereal company that exports, we would have possibilities of intervention in favor of the market, in favor of the Argentines. But that does not have to be done in any way.
Deputy Del Freda recalled the sale of Renova and remarked that today it is the main exporter in Argentina. “The star company of the group, which is already in the hands of its old international partners of Glencore – today Viterra – which have been condemned in different countries of the world, is the main exporter of Argentina”.