Fripur concentrates 30 per cent of frozen fish exports. (Photo: Fripur)
URUGUAY
Wednesday, August 06, 2014, 23:50 (GMT + 9)
The largest fish processing company in the country, Fripur SA, has requested the Court to hold its voluntary creditors meeting due to the complex financial situation experienced for several months.
A company source told the newspaper El País that the owners’ intention is to continue operating as usual and "ensure equal treatment of all creditors on the basis of the restructuring of its liabilities."
Fripur was founded in 1976 and currently employs about 1,100 people. The company accounts for 30 per cent of frozen fish exports and produces 10 per cent of the products consumed in Uruguay.
According to Carlos Fagundez, leader of the National Union of Seafarers and Allied, Fripur´s decision "is not surprising" because for months the sector has been aware of the critical situation.
In addition, he said that "so far", the Union has not been informed whether Fripur´s creditors meeting affects labour sources.
For his part, in statements made to the same newspaper, the head of the National Directorate of Aquatic Resources (DINARA), Daniel Gilardoni, acknowledged that the company is partly working as a result of economic disadvantages that have been dragged on for two or three years. And he confirmed that entrepreneurs’ intention "is to continue operating" despite the creditors meeting process.
"The firm’s situation was serious and the creditors meeting request confirms that situation," he pointed out.
Fripur’s total debt would amount to about USD 70 million, and two-thirds of it corresponds to what is owed to two banks: Banco Republica (46 million) and Banco Santander (USD 4.9 million).
Despite being aware of the fact that the Uruguayan fisheries sector is not undergoing a positive period, Gilardoni stressed that one can not think that "due to the problem experienced by Fripur the fishing activity comes to an end in Uruguay," and stated that the industry is viable and has the potential to grow.
Last year, the fishing industry faced a four-month strike that paralyzed the fleet. This problem, coupled with the price impact and competitiveness loss in the