Brazil's Imcopa begins consent solicitation for 10 3/8% notes of 2009

By Angela McDaniels

Tacoma, Wash., May 26 - Imcopa Importacao, Exportacao Industria e Oleos SA said a consent solicitation has begun for the $100 million 10 3/8% notes due 2009 issued by Imcopa International Cayman Ltd.

A meeting of noteholders will be held June 17, with voting instructions due by 10 a.m. ET on June 15, according to a company news release.

Imcopa is asking holders to approve a proposal relating to "a number of matters arising under the notes," including some relating to covenants.

The company needs the support of holders of at least 75% of the notes.

Imcopa said it will only pay the coupon due May 27 if the proposal is passed.

The company added that it has hired Deloitte Touche Tohmatsu as a financial advisor and is currently working on a "broader restructuring plan aimed at obtaining sufficient resources to honor its debt obligations and facilitate the continued growth and development of its business."

The plan could include additional financing through new bank lines of credit and/or securities issuances, as well as the extension of current debt maturities.

However, Imcopa said it will take "some time" to finalize a plan, and "therefore Imcopa needs the support of both its bank creditors and the noteholders."

HSBC Securities (USA) Inc. (888 HSBC 4LM, call collect 212 525 5552, +44 20 7991 5874 or liability.management@hsbcib.com) is solicitation agent. Lucid Issuer Services Ltd. (+ 44 20 7704 0880) is the information agent.

Imcopa makes soybean products and is based in Araucaria, Brazil.

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