Brazil's Independencia to split assets and debt

Brazilian beef processor Independencia S.A., which filed for bankruptcy in March, will split assets into two companies, according to a report by local newspaper Valor Economico.

The report said the company will relieve controlling shareholders from daily management duties and seek US$166 million in loans.

One of the companies, called Nisa, will take on the operational assets and one-third of Independencia's US$1.2 billion debt, said Valor. Nisa will partner with the investment arm of BNDES, Brazil's state development bank, and the Russo family who is the company's controlling stakeholders.

The second company ISA will assume two-thirds of Independencia's liabilities, with the Russo family giving up daily management duties and joining the company's board, Valor reported.

Independencia is requesting the loans from several banks to pay suppliers and bolster working capital, Valor said.