May 1, 2008

Indebted Brazilian soy crusher Selecta seeks judicial recovery

Brazilian seed and soy crushing company Selecta has requested administrative restructuring from a court in the state of Goias, daily financial newspaper Valor Economico reported Wednesday (April 30, 2008).

The Goias-based company, which has net debt of US$330 million, has requested administrative restructuring during which its creditors would not be able to access their investments for a period of six months.

A trader at a large US multinational told Dow Jones Newswires last week that Selecta was having financial troubles and might not be able to meet deliveries.

Although Selecta had been expanding, the company faced difficulties in March to meet margin calls and was unable to pay local farmers for physical soy.