Large Brazilian Coffee Exporter Files for Bankruptcy Protection

Terra Forte, one of the largest Brazilian coffee exporters, has filed for bankruptcy protection in a Sao Paulo state court, lawyers for the company said on Wednesday. Law firm Freire, Assis, Sakamoto e Violante said Terra Forte was looking to restructure 1.1 billion reais ($288.2 million) in debt, Reuters reported. It also said the exporter was seeking to raise 60 million reais in working capital from investors to maintain operations. Terra Forte is a well-known player in the international coffee market. Based in Sao Joao da Boa Vista, Sao Paulo state, the company has a branch in Poços de Caldas, in the main coffee belt of Minas Gerais state, and a terminal in Santos, the largest coffee exporting port in Brazil. Some coffee traders in London said in recent days that they heard Terra Forte had problems fulfilling contracts with European importers, and cited that as a reason behind a short-covering movement in the coffee market in recent sessions. Read more