September 25, 2008

Brazilian agribusiness group Agrenco Ltd. said on Wednesday (September 24, 2008) that the First Bankruptcy Court in Sao Paulo city authorised its judicial recovery request filed in August.

"In 60 days, a judicial recovery plan will be presented, in which the company will describe the measures to be taken with the object that the Agrenco Group Brazilian Companies may overcome the current economic and financial difficulties, allowing the maintenance of its business and the common interest of its creditors, employees, clients and shareholders," Agrenco said in a statement.

In June, Brazilian Federal Police arrested three company executives, accusing them of diverting funds and manipulating the company's balance sheets.

Agrenco is a global grain and oilseed trading company. The company created its Brazilian subsidiary in 2005, and this year expanded its Latin American operations to Argentina.

The company also owns controlling shares in a grain export terminal, Terlogs, in Brazil's southern state of Santa Catarina.

Agrenco debuted its shares on the Brazilian Stock Exchange, Bovespa, in October, 2007, raising BRL 666 million (US$363 million) from its initial public offering.

On Tuesday, Agrenco closed at BRL 0.44 on the Bovespa. So far this year, the company's shares are down 95.43 percent.