Brazil's Indepndencia SA files for bankruptcy

Independencia S.A, located in Sao Paulo, has also started a restructuring process under Brazilian insolvency law.

According to the company, it is seeking from US courts recognition of its Brazilian reorganisation in filing the Chapter 15 proceeding.

Sales plummeted 41 percent between the months October 2008 and January 2009, and non-payment in exports exceeded 20 percent of total sales in the fourth quarter of 2008.

In its filing, the firm stated that it has witnessed as a result of the current economic crisis a dramatic disruption in the international beef markets with Brazilian exports decreasing by approximately 34 percent in volume terms, since September 30, 2008.

In documents filed with the court, Independencia said about 86 percent of its debt was in US dollar denominated trade lines and the recent fall of the Brazilian real against the US dollar led to a rise in debt.

The Cajamar, Sao Paulo-based company said in its filing that its total debt was around US$1.2 billion, of which about US$575 million was in Brazil and US$525 million was in the form of private debt issues in the US and elsewhere outside Brazil.