Buenos Aires, May 7 (Eficom) .- The Argentine cellulose Company, one of the largest paper products manufacturers in the South American country, announced on Wednesday that it will not be able to face the payment of debt titles that expire this month, among other obligations.
In a note sent to the markets, the company reported that it will not be able to face the payment of negotiable obligations. They expire during May, as well as deferred payment checks.
Last April, the company had hired the firm Valo Columbus to “analyze strategic alternatives aimed at restructuring its indebted profile, improving its liquidity position and evaluating the potential incorporation of new partners.”
The company indicated that its cash generation capacity has been deteriorated by a set of factors that include a sales level greater than 30 % in the domestic market and a “substantial” increase in fixed costs measured in dollars, “product of a significant appreciation of the exchange rate, which also reduces the margin in export.”
Argentine cellulose, whose greatest shareholder is the firm Tapebicuá, said that “all available resources will be used strategically to ensure the operation and work continuity prioritizing the normal supply” of its customers. Effect
