Brazil-Beef Giant files for bankruptcy.

BRAZIL-BEEF GIANT FILES FOR BANKRUPTCY. Brazilian beef producer Independencia S.A. filed a Chapter 15 bankruptcy proceeding in a Manhattan court late last week, citing a decline in beef exports and a "crippling" debt burden.The company simultaneously commenced a restructuring process under Brazilian insolvency law. It said it filed the Chapter 15 proceeding so that U..S. courts may recognize its Brazilian reorganization process.The Cajamar, Sao Paulo-based company said in its filing that its total debt was around $1.2 billion, of which about $575 million was in Brazil and $525 million was in the form of private debt issues in the U.S. and elsewhere outside Brazil.In its filing, the company also said it had seen a fall of about 41 percent in sales between Oct. 2008 and Jan. 2009. It added that non-payment in its export business had exceeded 20 percent of overall sales in the fourth quarter of 2008."...Independencia has witnessed as a result of the current economic crisis a dramatic disruption in the international beef markets with Brazilian exports decreasing by approximately 34 percent in volume terms, since September 30, 2008," the filing said.In documents filed with the court, Independencia said about 86 percent of its debt was in U.S. dollar denominated trade lines and the recent fall of the Brazilian real against the U.S. dollar led to a rise in debt.The company owes about $105 million to JPMorgan Chase Bank and around $99 million to Citibank, according to court documents.Independencia added that it employed about 11,300 people, of which 96 percent reside and work in Brazil.