Brazil's Independencia makes Chapter 15 bankruptcy filing

By Caroline Salls

Pittsburgh, March 2 - Independencia SA made a Chapter 15 bankruptcy filing Friday in the U.S. Bankruptcy Court for the Southern District of New York in connection with its Brazilian insolvency proceeding.

The company has asked the bankruptcy court to recognize the Brazilian insolvency case and to grant a temporary restraining order to protect the company from potential lawsuits and other creditor actions in the United States.

According to the case recognition motion, the company "has recently been required to restructure a crippling debt burden."

Specifically, the company said the current economic crisis has resulted in dramatic disruption in the international beef market, with Brazilian exports decreasing by 34% in volume.

This decrease, coupled with a reduction in the company's domestic business, triggered a 41% overall sales decline between Oct. 1 and Jan. 30.

The company said its roughly $1.2 billion of debt includes two privately placed bond issues totaling $525 million.

Independencia is Cajamar, Brazil-based exporter of fresh and frozen beef and producer of leather. Its Chapter 15 case number is 09-10903.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.