Bloomberg News

Independencia Creditors Reject $376 Million Bid for Assets

October 03, 2011

(Updates with proposal terms in second paragraph, creditors in third paragraph.)

Oct. 3 (Bloomberg) -- Creditors of Independencia SA, the Brazilian meatpacker under bankruptcy protection, rejected a 706.9 million-real ($376 million) offer for the company’s assets, almost triple the value of a previous proposal.

Investors Alfredo Kaefer & Cia. Ltda. and Unibrax Investimentos & Participações SA made a joint proposal in which creditors of about 2 billion reais of debt would be repaid in as many as 30 years from future cash flows, according to documents distributed today at a creditors meeting in Sao Paulo. Under the proposal, holders of 2016 bonds would receive 7.3 percent of the debt in 30 years, while cattle ranchers would receive payments totaling 12 percent of liabilities.

Independencia, whose creditors include Citigroup Inc. and JPMorgan Chase & Co., has been under bankruptcy protection since February 2009 and halted production in October 2010. The company missed an interest payment on its 2015 senior notes in September 2010.

Creditors had previously rejected a 250 million-real rescue plan presented by Kaefer in July.

--Editors: Jessica Brice, Carlos Caminada.

To contact the reporter on this story: Lucia Kassai in Sao Paulo at

To contact the editor responsible for this story: Dale Crofts at .

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