Brazilian Sugar Company Moreno Files for Bankruptcy Protection

Brazilian sugar and ethanol maker Grupo Moreno, which operates three plants in the heart of Brazil’s sugarcane belt, has filed for bankruptcy protection, the law firm advising the company told Reuters on Thursday. The move underscores problems caused by poor margins in the sugar business in recent years and a depressed domestic ethanol market between 2011 and 2015, when the Brazilian government kept gasoline prices artificially low to fight inflation, turning ethanol margins negative, Reuters reported. Grupo Moreno has engaged in debt restructuring talks with banks and potential investors for months, according to a source who has advised some of the creditors. At one point, the person said, the company was close to a deal, which would include the sale of some assets and new terms for its outstanding debt. Read more