Source: El Faro de Vigo
Following the request made just a month ago by the Commercial Court of Pontevedra, Spain, regarding the canning company Bernardo Alfagame, the Court has now announced its decision to disqualify the management held by the owners, the Lago family.
This measure is considered “necessary and essential†and implies that the owners will no longer have control over the company’s four plants located in located in Vigo, O Grove, Vilaxoán and Ribadumia. Their assets are to be passed over to the administrators, who tested the breaches of obligations to provide documentations for the company.
Moreover, the Court has announced that later this month it will convene with members of Vigo and Vilagarcia to inform its opposition of the sale of the O’Grove facilities. It will also discuss the possibility of filing a criminal complaint.
It also accuses the owners to act on their own suspending management contracts without the approval of the bankruptcy administration, which is currently having powers in this regard.
“The suspension of contracts made by Mr. Lago Rey with regards to the staff of the company took place without approval from the bankruptcy administration,†states the court order.
For now, the Lago family has announced that they will resort to filing an administrative appeal within five days of notifying the parties.
However, sources close to the owners downplayed the importance of the court order; it does not affect “the negotiation with creditors and potential investors, nor the negotiations for the group’s recovery plan, which are going well.â€
“It seems suspicious that after always maintaining a friendly relationship with the owners, administrators were upset that the owners have presented a recovery plan, which has been extremely well received,†they added.
In the meantime, the CC.OO. Union leaders, Francisco Vilar and Fernando Ramos, argued that the court decision could be positive.
“Now, with the Lago family apart, there is the possibility of an agreement between all parties without any need for the Canning group to be liquidized. We hope this will help the process advance,†declared Vilar and Ramos.
In April, the same court declared the bankruptcy of the cannery, which accumulated a debt exceeding EUR 50 million.
At that time, most workers in the four factories believed that the heads of Alfageme had failed to manage the business properly, during the three years since they had acquired it.