Correo Argentino bankruptcy suspended
An Argentine commercial appeals court has suspended the bankruptcy of national postal concessionaire Correo Argentino SA after a successful appeal by the company, the mail service’s holding company announced. Correo Argentino’s owner, public service and infrastructure group Sideco Americana, filed a statement to the Buenos Aires stock exchange saying the bankruptcy decision handed down on Dec. 16 has been suspended on a successful appeal by Correo Argentino. In December, when a judge declared the postal service officially bankrupt, the court also issued an order prohibiting company directors from leaving the country. Sideco Americana didn’t specify whether this ruling was also suspended. In November, the government stripped Correo Argentino of its postal concession and assumed control of the service, saying it would reprivatize the company within six months. Correo Argentino immediately published advertisements in local papers saying it would ignore the government’s decision as company lawyers consider legal action. Sideco Americana said Wednesday that Correo Argentino is “taking measures and formulating petitions” to recover administrative powers lost as a result of the bankruptcy and “regain control of decisions in relation to the same, including the defense of its rights and assets.” That statement suggests that the company may be aiming to re-take control of the postal service from state hands. Correo Argentino has chafed against the government’s claims that the concessionaire has maintained poor service because of its massive debts, which total ARS900 million ($1=ARS2.88) – ARS450 million of that amount is owed to the state. The company says the government owes it money and derailed its debt restructuring by refusing to back its earlier request for an extension of bankruptcy protection.
