Larco to be sold within a year
The future of troubled nickel company Larco depends on the success of the complex undertaking of its privatization, which will start immediately. A bill submitted on Monday in Parliament by the Energy Ministry sets a specific timetable for the sale of the state company's assets and clearly provides for the obligation to submit a bankruptcy application in case the transfer of at least 75 percent fails.
The legislative intervention provides for the appointment of an administrator next month and the coverage of Larco's operating costs through one last injection by the state until the completion of the privatization. The cost of that injection will be deducted in advance from the price.
The administrator will immediately implement initiatives to reduce expenditure, including slashing salary costs by an average of 25 percent. Cuts will mainly affect older and highly paid...