Seafood Media Group - Worldnews - Fisheries Secretary Arbeletche explains the Profand case and the return of the Red Chamber: a legal labyrinth and federal obstacles

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1. End of the Red Chamber (RC) Contract

Arbeletche explained that the original contract with Red Chamber Argentina SA was not terminated, but "expired due to the end of the lease term." The Province resolved not to extend it, based on an audit report that detected the "deficient compliance" of the US firm since 2014.

2. Failed Agreement with Profand (Pesquera Deseado SAU)

Terms of the Agreement: The 20-year lease and option-to-purchase contract with Profand included significant improvements: the hiring of all Alpesca employees with seniority recognition, maintenance of the productive unit, and a monthly rent of $30 million.
Impossibility of Performance: This contract became "abstract" and was declared rescinded due to "impossibility of performance" (Art. 955 of the Civil and Commercial Code). The company took possession of the plant but could not operate the fleet.

3. The Federal Bureaucratic Blockade

The key to the failure was the stance of the national agencies:

This situation created a "bureaucratic labyrinth" that prevented Profand from operating, leaving the Province without the tools to enforce the contract without federal validation.

National Registry of Vessels (PNA): The Argentine Naval Prefecture (PNA) rejected the registration of the new lease contracts, arguing that the vessel annex contracts were registered in Red Chamber's name until 2027.
National Fisheries: The Undersecretariat of National Fisheries, in parallel, requested formal records of contract expiration from the PNA to update national permits.

4. Red Chamber's Return: Legal Imposition

Arbeletche maintained that Red Chamber's return to the administration of the assets was not a political decision, but the only viable way after the federal blockade.

The process was reversed through a settlement agreement before the Superior Court of Justice (STJ), after Red Chamber filed a lawsuit claiming recognition as the administrator.
The agreement returned the situation to terms similar to those of 2014, with the direct participation of the international parent company, Red Chamber Co.
The Executive agreed to the payment of $500 million in overdue lease payments by RC, with deductions for investments made.

The Minister concluded that, given the PNA's registered validity of Red Chamber's contracts until 2027, the only alternative was to revert the situation to prevent a total stoppage of activity and a greater economic loss for the Province.

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