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Vieira S.A. factory and vessels. (Photo: AACPPP/Vieira)
Extra insolvency agreement between Vieira and Newsan
ARGENTINA
Friday, July 25, 2014, 01:10 (GMT + 9)
Vieira SA and industrial group Newsan have settled operating and financing contracts in order to obtain sufficient funds to reactivate the fishing plant company and operate the entire fleet.
While the framework agreement was authorized by Judge Horacio Robledo, it is subject to prior repeal of Law 3287, declaring it as having public use and subject to expropriation of assets belonging to Vieira with the consequent restitution from the province of Santa Cruz.
The company presented a project where the repeal of the Act is requested at the Deputy Chamber of Santa Cruz, an initiative that would have the agreement of the majority to be approved, Mar & Pesca reported.
Currently, this Patagonian province is facing a serious financial situation, as every month it must spend around ARS 1.2 million (USD 147,000) to pay subsidies to Vieira’s personnel.
Meanwhile, the company argues that the repeal of the legislation is urgent because the shrimp (Pleoticus muelleri) season is starting and this is the main resource captured by Vieira’s boats.
The agreement with Newsan considers chartering three ships (two freezer beam trawlers and a jigger) and the contribution of USD 2 million to Vieira.
It is expected that the money will be helpful to settle debts, revive the plant, maintain the normal operation of vessels in the ports from Santa Cruz, use local labour and the portfolio of suppliers located in the province.
Since August 2012, most former employees have received a provincial grant but have no social work or pension contributions.
The new agreement between Vieira and Newsan has the consensus of the former employees, according to El Diario de Madryn.
On 7 August it will be possible to know if the Deputy Chamber of Santa Cruz finally repeal the law. That day is key for the Company Group Eduardo Vieira SA, a Spanish firm whose subsidiary in Argentina is Vieira SA.
"Although nothing can ever be considered settled, it seems that everything is going in this direction and in August we will recover our assets," said the president of the Spanish firm, Eduardo Vieira, to the newspaper La Voz de Galicia.
Currently, Vieira’s assets are valued at "not less than EUR 35 million."
Related articles:
- Vieira aims to prevent its Argentinean subsidiary liquidation
- Vieira delays creditors’ meeting and tries to unlock conflict in Argentina
By Analia Murias
[email protected]
www.seafood.media
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