Canadian creditor threatens to sue JBS over tannery acquisition
18/07/2012
Maple Trade Finance wants to challenge JBS’s acquisition of two of its tanneries. The facilities, in Itumbiara in the state of Goiás and in Uberlândia in the state of Minas Gerais, were run until 2006 by Xinguleder. The former owner ran into financial difficulties and defaulted on debts of $180 million to Maple Trade Finance and a number of other international investors.
Attempts at restructuring the debt failed and in 2008 Xinguleder leased the two tanneries to rival leather producer Bertin.
According to the Canadian company, the transfer of the ownership of the two tanneries to JBS when it acquired Bertin’s leather business in 2009 ought not to have gone ahead without the approval of creditors.
The Financial Times has quoted JBS as denying the claims. It said that the practice of leasing production facilities was common in Brazil and that it had acted in keeping with Brazilian bankruptcy law.
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