Argentina's Fargo announces results of unsecured creditor restructuring proposal vote

By Caroline Salls

Pittsburgh, Oct. 28 - Compañía de Alimentos Fargo SA announced the results of the unsecured creditor votes on the Acuerdo Preventivo Extrajudicial restructuring proposal submitted by Fargo and its Panificación Argentina SA subsidiary, according to a news release.

A total of 437 of Fargo's financial and commercial unsecured creditors, representing 85.19% of these creditors, approved the APE, and all three of Fargo's labor legislation unsecured creditors approved it.

The consenting Fargo financial and commercial creditors hold Ps. 425.47 million of debt, or 99.27% in amount, and the labor legislation creditors hold Ps. 9.56 million of Fargo's debt.

Meanwhile, all 12 of Panificación's commercial unsecured creditors approved the APE, and two of the subsidiary's labor legislation unsecured creditors, representing 66.67% of these creditors, approved it.

The subsidiary's commercial creditors hold Ps. 106,870 of debt, and the consenting labor legislation creditors hold Ps. 108,862 of debt.

As previously reported, Fargo's 13¼% noteholders unanimously approved the joint restructuring proposal, with holders of $97.65 million face value of the notes voting.

Under the APE proposal, Fargo will issue new 32-year notes to its "quirografarios" creditors.

Two classes of new notes will be issued, one for financial and commercial creditors and one for holders of Fargo's existing notes.

In addition, Sanalp 2005 SL will have an option to buy notes under the restructuring.

Compania de Alimentos Fargo is a Buenos Aires-based producer and distributor of packaged bread and bakery products in Argentina. Its Chapter 11 case was dismissed by the U.S. Bankruptcy Court for the Southern District of New York on Oct. 12, 2007.

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