Granja Tres Arroyos faces debt crisis as Wade SA files for bankruptcy protection

Granja Tres Arroyos, a major player in the Argentine poultry industry, is facing a severe financial crisis following the failure of private negotiations to restructure $350.9 million in debt. Wade SA, the company managing the former Cresta Roja facilities, has formally filed for bankruptcy protection (concurso preventivo). This move follows unsuccessful attempts to reach an agreement with creditors that would have involved debt haircuts of up to 75%, extended payment terms, and the sale of non-strategic assets.

The crisis has significant implications for employment in the Ezeiza and Esteban Echeverría regions. The Esteban Echeverría plant has already seen approximately 450 layoffs. The group’s financial deterioration is further evidenced by more than 7,000 rejected checks totaling over $101 billion pesos.

The company’s decline is linked to the 2023 closure of the Chinese poultry market to Argentina. This triggered a series of labor adjustments, including voluntary retirements, salary reductions, and plant closures. While the group once employed nearly 6,500 people, it has seen over 1,700 workers dismissed in recent periods. Granja Tres Arroyos SA, the holding's core company, is expected to follow Wade SA into judicial proceedings.