Unsecured Financial Creditors in Restructuring of Independência S.A., One of Brazil’s Largest Meatpackers
November 06, 2009
Cleary Gottlieb is serving as United States counsel to an ad hoc committee of bank creditors of Independência S.A. (“Independência”) in connection with Independência’s approximately $1.1 billion of bank and bond indebtedness. Independência filed for the local equivalent of Chapter 11 bankruptcy protection in Brazil in February. Since that time, Independência has been in extended negotiations with its creditors in an effort to restructure the company’s debt in light of reduced demand and revenues caused by the global financial crisis.
On November 6, Independência’s restructuring plan was approved by creditors holding approximately 70% of the company’s debt. The restructuring plan is subject to the final approval of the Brazilian bankruptcy court.