March 16, 2021 |
In Godoy Cruz, a small city near wineries and the often-snow-capped Andes in western Argentina, IMPSA churns out generators and turbines. Established in 1907 to make cast-iron parts, wine-making tools and gates for irrigation canals, today the company competes with Austria’s Andritz, France’s Alstom, Germany’s Voith and U.S.-based General Electric to supply power plants around the world.
Yet for the past six years, IMPSA has relied solely on cash flow to finance its operations, a misfortune of the volatility in Latin America, one of its main markets.
After a few clients failed to pay in Brazil and Venezuela, it fell into default in 2014, cutting off its access to capital. The company went on
The pandemic pushed many companies to restructure their debts, even their businesses, as sales declined. Surprisingly, most were successful.