January 15, 2009
Brazil's Arantes Alimentos files for credit protection
Brazilian beef company Arantes Alimentos Ltd. has filed for protection from creditors amid the financial crisis.
The company's action had shocked the farming industry, in the wake of the problems at poultry giant Sadia.
Arantes Alimentos has estimated debts of US$650 millions. The company were involved in a rapid expansion programme, making several large acquisitions in the past few years but the credit crisis had pulled everything to a stop.
The company's application will be studied by a judge, if granted they have 60 days to present a recovery plan to the court.
Two credit rating agencies downgraded the company after Christmas when it failed to meet interest payments on bank loans.
