Background of the Crisis TicoFrut, a significant employment driver in the north of Costa Rica, is currently embroiled in a financial dispute that puts the livelihoods of 5,355 individuals at stake. This iconic company is pivotal for many families in the region who rely on its stability for sustenance.
The Genesis of the Problem In March 2021, faced with a severe financial downturn, TicoFrut sought judicial protection. The reasons were multifaceted: a worldwide decline in the demand for orange concentrate, escalating production costs from pest-related issues, and the overarching health crisis. The judiciary responded by temporarily granting a preventive agreement, allowing TicoFrut a reprieve from its credit dues.
Banks Raise Concerns However, the Creditor bank has since highlighted discrepancies related to interest payments on credits. The bank’s argument seeks to render the preventive agreement null and void. If they succeed, TicoFrut faces immediate bankruptcy.
The Potential Socioeconomic Impact A bankruptcy would deal a blow to the northern zone’s employment sector. To grasp the scale:
- TicoFrut directly employs 1,155 individuals.
- 692 work in the orange farms.
- 463 operate in the Aguas Zarcas, San Carlos processing plant.
- They offer 2,200 seasonal positions every year between January and May for orange harvesting.
- Additionally, they support 2,000 indirect jobs.
The Staggering Debt and the Path Forward The company’s financial burden amounts to $178 million. Their strategy involves a debt restructure, planning to clear all dues in an 18-year timeframe. They’re seeking a two-year grace period and hope to resume payments in the third year. The point of contention remains the interest associated with this financial debt.
