Banacol, Columbia's second largest banana company, which sources bananas from Columbia and Costa Rica, has reported that seven of its subsidiary companies will undergo financial restructuring, according to Elcolombiano.com.
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Banacol reportedly has assets worth $208.6 million, while its current liabilities are valued at $183.6 million.
A supervisory body appointed by the Columbian government will oversee the reorganization of Banacol's finances.
The Banacol board approved the application for the reorgnization process on December 27, 2013. Reasons for Banacol's financial woes are said to include low international prices, high production costs compared with other competing countries, bad weather, and the appreciation of the peso against the dollar.
Banacol's existing trade commitments and contracts with clients in Europe and North America are not expected be impacted by the restructuring.
Banacol
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Banacol
We are an international corporation dedicated to the production and marketing of vertically integrated agro-industry…
