Wednesday, February 11, 2009

Is this heading towards bankruptcy?

No. At this point in time Aifos is not in a "legal" bankruptcy situation. At this moment there exists no “bankruptcy” proceeding only the commencement for the solicitation. Once we find ourselves in the midst of the solicitation proceeding two things can occur: That an economic viability plan may exist for the company and could continue to exist in the future or that the liquidation of that same begins. We could find ourselves in what could be the bankruptcy of the company at the moment we would enter phase of liquidation and in doing so would manifest the impossibility for the company to continue its business activity and would begin the process of their disappearance. In this specific case, once finally declared the solicitation, the viability of the company would be more disputable because of the high level of debt that the Administration will be confronted with and that will make the viability very difficult.

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