Brazil

A group of 1,524 cattle ranchers said they would reject a debt-reduction plan by Brazilian beef processor Independencia to exit bankruptcy proceedings, Valor Economico reported Friday. Independencia, which filed for bankruptcy protection in early March, offered to cap debt payments to ranchers at 80,000 reais (US$43,550), Valor said. That makes up for an estimated 120 million reais in total payments for the ranchers. But they instead are demanding a total 330 million reais be paid as part of any renegotiation accord or will halt supplies to the company, Valor said.

The International Monetary Fund approved plans on Wednesday to issue its own debt to strengthen its capacity to fund bail-outs, the Financial Times reported. Meanwhile, the World Bank said it committed a record $59 billion in loans and guarantees to developing countries in the year to June 30.

BTA Bank, Kazakhstan’s largest lender, began talks with creditors to renegotiate payments on as much as $15 billion of debt in a bid to avert bankruptcy, Chief Executive Officer Anvar Saidenov said. “The viability of the institution will depend on how successful we are in negotiating with our creditors,” Saidenov, who is also chairman of BTA’s management board, said today in an interview in London.

Fiat SpA's chief executive might swear that he is not trying to build an empire, but he is certainly looking for scale--on the cheap. Sergio Marchionne faces a Thursday deadline to close a landmark deal to form a partnership with ailing U.S. car maker Chrysler LLC but he has already shown an interest in Opel, the German unit of General Motors Corp (GM). News reports also speak about a possible collaboration between Fiat and GM in Latin America, especially Brazil where they both have a strong presence.

Brazilian bankruptcy filings are set to soar as the country’s corporates are squeezed by a global downturn and gridlocked capital and bank markets, say lawyers specializing in the matter. Ronald Herscovici, a partner at Souza Cescon in Sao Paulo, said the new bankruptcy law in Brazil makes it more attractive for companies to file because it encourages the preservation of the concern, rather than pushing towards asset liquidation, as with the former law, LatinFinance reported.

The risk of default by Brazil’s biggest companies increased as the global credit crisis spread to the country, O Estado de Sao Paulo newspaper reported. The credit rating of Brazilian companies with more than 800 million reais ($337 million) in revenue jumped from 4.5 to 5.3, Estado reported, citing Serasa Experian, the biggest credit- rating firm in Latin America. A bigger number indicates a higher probability of default, according to the newspaper. Serasa downgraded 34 of the 276 companies it rated, Estado said. Individual credit ratings by Serasa are confidential.

Automotive supplier Tedrive has filed for insolvency for two German units, citing a recent slump in orders, according to the company's insolvency administrator, The Guardian reported. Tedrive was the second industry player to file for insolvency in the region within a week, after German brake pad maker TMD Friction did the same for four German plants. The administrator said Tedrive aimed to restructure its business at the two units. The units make driveshafts and steering systems, and have a total of 1,500 workers.

Brazil's important ethanol sector took a hit Friday after a major producer revealed that it filed court papers seeking protection from creditors while it restructures $100 million in debt, the Associated Press reported. Companhia Albertina sought the protection similar to Chapter 11 bankruptcy reorganization used in the United States but will continue operating, said Gabriel Andrade, an investment banker with Sao Paulo's Arsenal Investments who is advising the company. It appeared to be the first sign of trouble for an ethanol producer since the credit crisis hit the planet hard.