March 18, 2009
Brazil''s Agrenco looks for strategic controller
Brazilian agribusiness group Agrenco Ltd. is looking for a strategic controller, local newspaper Valor Economico reported Tuesday (March 17).
Agrenco, which has around 1 billion reals (US$439 million) in debts, on Thursday will present its plans for judicial recovery to 600 creditors, Valor reported.
The plan is expected to include a new strategic operator, with a deal being struck in exchange of shares, the newspaper reported.
Companies such as Louis Dreyfus, Glencore and Noble Group were reported to have been interested, the newspaper reported. Agrenco was unavailable for comment.
The First Bankruptcy Court in Sao Paulo in September authorized its judicial recovery reques - similar to Chapter 11 bankruptcy proceedings.
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 recently expanded its Latin American operations to Argentina.
