Fargo loan agent to foreclose on some assets in 60 days

By Caroline Salls

Pittsburgh, March 30 - Compania de Alimentos Fargo SA credit agreement agent ABN Amro Bank NV, Sucursal Argentina said it has decided to foreclose on Fargo's assets in the next 60 days, according to a company news release.

In connection with the foreclosure notification, ABN Amro will auction Fargo's brand names and the shares in Panificacion Argentina SA owned by Fargo, foreclose on its plants in Ruta Panamericana and Marcos Sastre, Talar, province of Buenos Aires and auction the machinery at these plants.

Fargo's board of directors has called a meeting of the holders of its $120 million 13¼% notes due 2008 on April 28 to either agree to the foreclosure and auction or consider alternatives.

Fargo had previously attempted to restructure its debt via a tender offer from Sanalp 2005, SL but was unable to get the agreement of noteholders.

Fargo is a producer and distributor of packaged bread and bakery products in Argentina.

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