Colombia Announces Progress and New Liquidator For De Los Andes Coffee Cooperative
Colombia Announces Progress and New Liquidator For De Los Andes Coffee Cooperative
Bogota (Coffee Network)- The Colombian regulator that oversees coffee cooperatives, the Superintendency of Solidarity Economy, appointed Guillermo Alirio Gaviria Zapata, from the firm Auditamos Gaviria y Asociados, as the new liquidator agent for the de los Andes Coffee Growers' Cooperative, replacing the Fundación de Servicios Cooperativos de Auditoria (Funservicoop), the entity that was in charge of the process during the last year.
Although the reasons for this change have not yet been disclosed, the legal representative of Funservicoop, John Jairo Garzón Duarte, issued a statement detailing the progress made on the road to reactivating the cooperative and the efforts made with creditors and organizations in the coffee sector.
Meanwhile, the associates of the entity hope that the decision does not delay progress and, on the contrary, expedites the decision of the National Federation of Coffee Growers to include de los Andes cooperative in the recently launched Solidarity Action Plan, which seeks to launch a rescue package to cooperatives that have pending deliveries of coffee in the futures market.
Although the reasons for this change have not yet been disclosed, the legal representative of Funservicoop, John Jairo Garzón Duarte, issued a statement detailing the progress made on the road to reactivating the cooperative and the efforts made with creditors and organizations in the coffee sector.
Strategies were used to alleviate the financial burdens of coffee growers who owed futures contracts, such as receiving coffee as payment in kind, which allowed the collection of COP1.864 billion (US $443,800), and the discount of 50% of the capital of the debts and payment terms for coffee growers who had paid at least 10% of the difference, a strategy that managed to recover COP3.311 billion, Garzon stated.
Also, the signing of 376 payment agreements was highlighted, with an expectation of recovering the portfolio of COP22.524 billion.
Regarding the relationship with creditors, Funservicoop held meetings with the National Federation of Coffee Growers (FNC) and financial institutions to reach agreements that would allow the reactivation. In this process, seven payment proposals were presented, until reaching a final offer of COP86.512 billion, broken down into two parts: COP49.515 billion in assets delivered in payment in kind, which the reactivated cooperative could use as a loan and COP36.997 billion with a mechanism of adjustment to the value of money based on the CPI, without exceeding 6%.
Another important aspect of Funservicoop's management was to get financial creditors to express in writing their willingness to support the reactivation by accepting payment of 40% of the capital owed, with forgiveness of 60% of the capital and 100% of the interest. The financial strength achieved by the cooperative in the last year is also highlighted, since at the beginning of the management the available resources in cash and banks were close to COP51 billion. These funds, according to the outgoing entity, would allow to comply with the payment proposal to creditors and ensure working capital for the eventual reactivation.
Only in 2019, after multiple warnings from the Federation, Supersolidaria intervened to administer de los Andes cooperative. “What Supersolidaria found was a liability of COP195 billion pesos (US$50 million), the product of speculative operations on the New York stock exchange.”
Expectation among coffee growers
The change of liquidating agent occurs at a key moment for the cooperative, when negotiations are underway with the FNC and other actors in the sector, and which gains strength, if one takes into account the recent launch of the Solidarity Action Plan with which the Federation seeks that the cooperatives can deliver the pending coffee, 33 million kilos, which at today's prices would be impossible for the solidarity sector and where the union institution would be willing to support the required financial operations and for its part the National Coffee Fund would make an investment in promoting cooperativism, based on efficiency in the commercial operation.
Although the measure is aimed at the 18 of the 34 coffee cooperatives in the country that provide a purchase guarantee, which would exclude de los Andes coffee cooperative due to its current state of liquidation, the union representative of the coffee growers, Alexander Taborda, stated that it is the perfect moment for the Federation to give its approval in favor of the reactivation of the company. "
By Diana Delgado
