Tuesday, June 6, 2023

Chilean subsidiaries of Australian companies for bankruptcy filings: what are its reasons?

What has happened?

The Chilean company Buildtek, a subsidiary of the Australian industrial support and financial construction monadelphous group, has started a voluntary process, that is, its bankruptcy, which it submitted to the national justice system.

The firm declared that due to the rise in the prices of materials and the salaries of its workers, it was not able to comply with the contracts that had been considered before the start of the pandemic.

What did the crowd say?

According to the Financial Journal, Buildtek revealed debts of $37,800 million, which caused the company to be financially insolvent and therefore unable to meet its obligations.

“Buildtek has recently faced serious problems and obstacles in collecting from its clients large amounts of money that are not due and payable, which is another relevant factor in the lack of cash,” said the company’s lawyer Javier San Martin.

“By 2020, in the middle of the pandemic, the company has been awarded several projects. Unfortunately, such projects have been developed with labor and material prices in effect for 2020,” he added.

By closing your business

“In recent years, the Chilean resource sector has been significantly affected by the economic effects of the pandemic,” the Australian company reported. “These pressures are impacting Buildtek’s financial performance,” he added.

As a result, one day after starting the process of voluntary liquidation, the Australian trading company was informed of the closure of its operations in Chile, after almost four years on South American soil.

“The company has entered a state of insolvency and is not in a position to continue to fulfill the defendant’s agreements with its customers,” they concluded.

All about the economy

Nation World News Desk
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