Algodonera Avellaneda declared bankrupt in Argentina

A court in Reconquista, Argentina, has declared the bankruptcy of Algodonera Avellaneda SA, a textile company linked to the Vicentin Group. Judge Fabián Lorenzini issued the ruling after negotiations with creditors failed and no interested parties or worker cooperatives emerged during the legal salvage process.

The company faces massive financial obligations, including verified debts exceeding US$260 million, plus additional debts in pesos totaling more than $6 billion. The bankruptcy affects approximately 360 workers.

To mitigate the social and economic impact, the court has requested reports to determine if the company can continue operating temporarily under the supervision of bankruptcy trustees. This approach aims to maintain industrial activity as a “going concern” to facilitate an orderly sale of the business and preserve asset value and employment.