Independência’s judicial recovery approved
14/05/2009
The request for judicial recovery made by Frigorífico Independência has been approved by a court in the state of Sao Paulo.
The ruling means that the packer and tanning company has 60 days to produce a judicial recovery plan to its creditors, to whom it owes US$1.6 billion.
The company has requested the support of cattle breeders for 60 days to allow it to resume operations in some of its units. Independência has said the “high levels of idleness” at many of its plants is causing to “leak money”.
It has confirmed that payment to cattle breeders and other suppliers is its main priority. Independência owes cattle breeders US$ 821 million.
In February, Independência put all its operations on hold and said it had been badly affected by the international financial crisis. In April, it handed in the necessary documents to set its recovery plan in motion.
In April, the company resumed slaughter at its Janaúba unit in Minas Gerais and declared that resuming operations at more of its units would “minimise the need for further job losses”. From December 2008 to April 2009, Independência laid off 6,715 people.
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