| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Compañía de Alimentos Fargo SA > News item |
Fargo says it is complying with Argentinean law, warns Chapter 11 will raise expenses
By Caroline Salls
Pittsburgh, Sept. 14 - Compania de Alimentos Fargo SA said it has acted in compliance with the laws of Argentina and added that an involuntary bankruptcy filed against it by bondholders will raise its costs.
The company said it was aware of the involuntary filing but said it has not been formally notified.
Its comments were also intended to clarify several points made in the petitioning creditors' press release, according to a company news release.
Based on information it read in the press, the company said it wishes to clarify that there was no doubt that the company's financial situation was well known and that it acted in strict compliance with the laws of Argentina in its concurso proceedings.
Fargo said the Chapter 11 proceedings will only tarnish the judicial process in Argentina and generate more expenses for the company.
According to the release, in the last bondholders meetings on April 28, May 26 and June 5, the same funds that made the involuntary bankruptcy filing against Fargo rejected the possibility of recovering the right to vote.
As previously reported, the involuntary Chapter 11 filing was made Tuesday in the U.S. Bankruptcy Court for the Southern District of New York by The Rainbow Global High Yield Fund, Argo Capital Investors Fund SPC, The Star Fund and The Rainmac Fund, which hold more than 65% of Fargo's 13¼ senior notes due 2008.
The bondholders said the filing follows the effective exclusion of the bondholders from earlier concurso bankruptcy proceedings in Argentina, following an Argentine court decision in March 2005 to disallow bondholders from voting the principal amount of their claims.
Compania de Alimentos Fargo is a Buenos Aires, Argentina-based producer and distributor of packaged bread and bakery products in Argentina. Its Chapter 11 case number is 06-12128.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.