Spain’s Siro Foods has reached an agreement with its workers on a reviewed and improved ‘Competitiveness Plan’ that will allow the factories in Castilla y León to resume production under new terms. The company had paused production in June after potential investors turned down a deal. The company agreed in principle on the Plan with the new investors, the Davidson Kempner and Afendis funds, in a deal mediated through the Ministry of Industry, Commerce and Tourism, Revista Info Retail reports.
The revised plan, improved by investors, was endorsed by the more than 1,500 workers at the Venta de Baños and Aguilar de Campóo (Palencia) and Toro (Zamora) plants, the media outlet adds. It is said to include labor and salary improvements for workers.
The funds also agreed to an investment of up to EUR 100 milion in the modernization of the factories in Castilla y León
The agreement also secures the activity will continue at the Venta de Baños plant for two more years, in which time it will either improve its business or find an investor.
The company’s debt, above EUR300 million, adds to the losses recorded in 2021, of more than EUR 47 million, bringing the biscuit maker into bankruptcy proceedings, the Spanish publication detailed.