Curtume CBR is at a crossroad. Local authorities of the Nonogasta city and those of the La Rioja province have examined the situation to avoid shutting down operations. But saving the tannery is very complex, because the business requires significant liquidity to stay afloat. That’s why over 800 of its employees are protesting by blocking the roads.
Curtume CBR is at a crossroad
According to local press, the management of the company owner of Curtume CBR have estimated that the financial need to continue operating is of 5 million USD. An estimate that, according to local authorities, is incorrect, as the calculation allegedly shows a need for 6.5 million USD.
cadena3.com states that the president of the La Rioja province, Ricardo Quintela, plans on asking the central government for a loan. But, public funding is unlikely, as the company already has 28 million USD of debt and thus isn’t allowed to access SAPEM. The latter is the legislation that allows companies in difficulties to ask the government for funds in exchange of the majority of ownership and the nomination of a special deputy.
Either the business finds the money to continue operation, hoping that the market will have the necessary demand for the business to repay its debt, or Curtume CBR will be forced to file for bankruptcy. The complex situation has pushed workers to protest on the roads. The company’s employees have blocked traffic for 30 minutes at the time in Nonogasta for 3 days in a row, allowing for 15 minutes of clear way in between the blockages.
- Argentina: last call for Curtume CBR, 5 million needed
- Argentina, is the Brazilian ownership of Curtume CBR going away?