By Marcelo Teixeira
(Reuters) – which financed two Brazilian espresso merchants that final week sought court-supervised debt restructuring have a complete of 1.1 billion reais ($181.6 million) in credit score with the corporations, courtroom paperwork seen by Reuters confirmed on Monday.
The quantity refers solely to advance cash the banks gave to merchants Atlantica and Cafebras in contracts linked to future espresso exports, identified domestically as ACCs, in accordance with the paperwork. It’s not identified if the merchants produce other debt with roasters or espresso importers associated to provide offers.
Brazil’s largest financial institution, state-controlled Banco do Brasil SA (OTC:), has the most important share of the debt with 765 million reais, adopted by Banco BTG Pactual (BVMF:) with 181.5 million reais and Banco do Nordeste with 100.9 million reais, the paperwork confirmed.
Different three banks had smaller credit pending from ACCs.
Atlantica and Cafebras, each owned by Brazilian espresso group Montesanto Tavares, filed a request final week to have a big a part of its debt negotiated in courtroom, a judicial transfer that may precede a chapter continuing if the negotiation just isn’t profitable.
The transfer left the espresso market on tenterhooks with espresso importers fearing they might not get their orders delivered or that different exporters in Brazil might run into monetary troubles as espresso costs skyrocketed.
Banco do Brasil, BTG Pactual and Banco do Nordeste didn’t instantly return requests for feedback.
Atlantica and Cafebras stated within the courtroom paperwork that the latest spike in costs was the newest problem to their operations, since they precipitated margin calls on their hedging operations to bitter.
One espresso dealer, who despatched a few of the courtroom paperwork to Reuters, stated he was stunned by the scale of the credit score the 2 merchants had, notably the half from Banco do Brasil.
“It’s a big quantity for firms that aren’t that massive,” he stated, asking to not be named given the sensitivity of the problem.
($1 = 6.0580 reais)
