Vicentin's Operations Halt Amid Persistent Bankruptcy Struggles

Argentine conglomerate Vicentin has stopped activities at its soybean crushing plants due to a lack of contracts amidst ongoing bankruptcy proceedings. Although the firm aims to resume operations after legal uncertainties are resolved, it faces financial challenges and labor disputes regarding overdue wages in Argentina's vital soybean sector.

Argentine conglomerate Vicentin has temporarily ceased operations at its soybean crushing facilities, citing a lack of contracts amidst its ongoing bankruptcy proceedings. This development was confirmed in a statement released by the company on Saturday.

Since entering bankruptcy in 2020, Vicentin has been working to stabilize its financial situation. The company plans to resume operations once the judicial uncertainties are cleared. Notably, Argentina ranks as the world's largest supplier of soybean oil and meal, and Vicentin once played a significant role in this market before its financial struggles began.

Adding to the financial woes, Vicentin has faced challenges in paying workers. Last month, workers affiliated with the Argentine oilseed organization ended a strike and resumed work at Vicentin's soybean processing plants after the company committed to settling overdue wages. However, the recent stoppage raises concerns about potential layoffs, a detail that was not specified in the company's statement. Both the oilseed workers' union SOEA and Vicentin have yet to respond to inquiries from Reuters.

(With inputs from agencies.)