October 14, 2010

Independencia to suspend production and initiate management changes

Independencia has  announced the suspension of its production and changes to its management due to low capacity utilization.

Independencia's current production does not generate sufficient cash flow to cover fixed costs and overhead expenses of the company. As a result, and in order to preserve its liquidity position needed to guarantee the maintenance of its industrial assets, Independencia announces the immediate suspension of its production activities.

In line with the strategy of preserving its liquidity position, the Company promoted a reduction of its workforce, including senior management. At the request of the Board of Administration, the directors ceased their activities last Friday (Oct 8).

The Company continues to work with its creditors and potential investors to find a solution to the current situation.