PUERTO RICA: Embargo of poultry assets
The IRS embargo is only one aspect of Papri's financial woes. The company has US$15m in public indebtedness and has an outstanding bank note for over US$12m with Banco Santander. In addition, the company has not been able to totally pay off production equipment valued at US$5.3m which was supplied by FJC International in 1997.
In an effort to cut losses, Papri recently made substantial staffing and production cutbacks. It looks as through management will not easily escape the company's liabilities. If the company cannot cover its Social Security indebtedness, upper management will be liable to pay it themselves. The company also faces legal action brought by nine poultry farmers who claim that Papri owes them US$14.5m in damages.
SOURCE: includes information from the article "Embargan a Papri", El Nuevo Dia (22 September, 2000).
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