Lácteos Verónica files for bankruptcy protection amid massive debt

Lácteos Verónica, a major dairy company in Santa Fe, has filed for a preventive reorganization process (concurso preventivo) to avoid bankruptcy. The company reported total liabilities of approximately $15.945 billion, which includes $4.745 billion in bank obligations and over 2,900 rejected checks totaling roughly $11.2 billion. The filing is being processed by the 17th National Commercial Court in Buenos Aires.

The financial crisis has led to a near-total production halt at the company’s three plants in Clason, Lehmann, and Suardi. This paralysis affects approximately 700 workers facing unpaid wages and job insecurity. Additionally, the crisis impacts the supply chain, with roughly 150 dairy producers claiming unpaid debts estimated at around US$60 million.

Prior to this filing, the company attempted a crisis prevention procedure that included plans for 200 layoffs, but this failed to resolve the liquidity issues. In response to the impact on workers, the Santa Fe provincial government and local municipalities have provided food assistance to affected families. As a limited measure to restore some activity, the Córdoba-based cooperative Copalac has agreed to operate the Suardi plant on a toll basis to produce milk powder, which may provide temporary employment for about 30 workers.