Alvaro Noboa’s company announced debt payment to avoid auctioning
Posted On 09 Dec 2016
Representatives of the banana industry La Clementina, one of Noboa Corporation´s companies, announced on Thursday, December 8, 2016, payment of the debt the firm maintains with 1,853 former workers of La Clementina banana plantation.
The Ministry of Labor estimated that the liability was around US $ 4 million. The Ecuadorian Cardboard Industry, also one Alvaro Noboa´s company, and located in the south of Guayaquil, is among the assets that were going to be auctioned in the execution process of the outstanding debt with La Clementina, former workers. The Ministry of Labor indicated on November 21, 2016, that they would proceed to the auction of the property of the businessman and presidential hopeful on December 9th.
“The auction of the property is within the execution process that follows the collection of the eviction and other bonuses established by the Court of Conciliation and Arbitration,” said the Labor Ministry in a statement. The cardboard factory, located in the south of Guayaquil, was the first asset to be auctioned.The value of the property is USD 7 956 589. The process had to be carried out in the provincial delegation of the Ministry of Labor in the city of Babahoyo (Los Ríos), from 15:00.
Fernando Alarcon, the legal representative of the Noboa Corporation, assured this Thursday that the Agricola Bananera La Clementina company paid USD 3 944 420 to the Labor Inspectorate of Babahoyo due to the debt to the former workers of La Clementina farm. “To safeguard the interests of our 400 employees of the company, the indemnities commissioned in the collective dispute have been paid, to prevent the improper and arbitrary auctioning of the facilities of the Industria Cartonera Ecuatoriana,” said Alarcon. The latter was accompanied by Leonardo Noboa Icaza, the legal representative of the cardboard firm.