The Mercantile Court of Almeria has admitted the bankruptcy filing procedure presented by the company EH Femago, with headquarters in Santa María del Águila; a district of the municipality of El Ejido.
Given the economic volume, this bankruptcy is the biggest in the province so far this year. Femago tried to prevent it, but was unable to reach an agreement with its creditors. The main creditors are Cajamar and Banco Popular.
EH Femago is the association of the horticultural companies Unión de Agricultores, Agrupalmería, Agrocastell, Euro Aida, Allimpex, Agro Esencias and Ponienteplast. The group produces and markets melons, courgettes, aubergines, cucumbers, peppers, green beans, tomatoes and watermelons.
Femago, Agrocastell and Agrupalmería run the three largest auctions in the south east of Spain.
In the red
The financial problems affected mostly the Femago matrix. There are several causes for the setback. On the one hand, the accumulation of huge losses, which almost 10 million Euro in the red in the years 2015 and 2016. On the other, the departure of key commercial personnel, which translated into a drop in sales volumes.
Other important factors have been the seasonality of the activity and the imbalance between the debt repayment schedule and cash generation. Lastly, it is worth mentioning the mistake of adopting some strategic and investment measures. The consolidated balance sheet of EH Femago shows assets worth 40 million and a liability or debts amounting to 47 million.
The company has several shareholders, but the most important one is the company Antonio Góngora e Hijos, with 29%.
Source: cronicaglobal.elespanol.com
