Aceros Arequipa, one of Peru’s largest steelmakers, said it will liquidate steel distributor Comfer, which it acquired in February 2021 for $16.8 million.
Comfer SA is a Peruvian steelmaking and steel service center company, with a product line that includes steel nails, wires, rebar and electro-welded steel meshes. Comfer SA has a producing facility in El Callao, near Lima, and another office in Lima.
While liquidation usually involves selling off a company’s inventory to generate cash or pay debts, the reasons behind Aceros Arequipa’s decision isn’t clear; some news reports suggest the company already took advantage of Comfer’s client portfolio and is now paying the company’s debt to distribute its steel under its own brand name.
Aceros Arequipa said it hired Alva Legal Asesoria Empresarial to act as its representative to carry on Comfer’s liquidation process. The Peruvian steelmaker said that the company’s board of directors must approve any transfer of real estate property then owned by Comfer. Alva Legal should also present reports on a quarterly basis regarding the liquidation’s process.