Brazil-Beef Giant may re-open.

BRAZIL-TROUBLED BEEF GIANT MAY RE-OPEN PLANTS.

Brazilian beef company Independencia SA said Thursday

it aims to restart operations in 30-40 days.

Independencia is preparing a package that will include a range of options

from restructuring debt payments to offering equity, Gustavo Junqueira, a lead

advisor on the deal told Dow Jones Newswires.

Independencia has been severely affected by diminished overseas demand, beef

oversupply and falling beef prices leading to around $1.4 billion in debt.

As a result, Independencia has recently closed 23 units and shed 6,200 jobs

since filing for protection from creditors under the local equivalent of U.S.

Chapter 11 bankruptcy law in February.

This judicial recovery process can take six months if the law courts act

quickly, said Junqueira of Sao Paulo-based investment bank boutique Arsenal.

"This is too slow, and we need to work fast to keep the value of the company,"

Junqueira said.

With Independencia’s plants remaining shut, the company cannot generate

revenues or make the money its needs to pay suppliers and creditors and get

back on track.

Independencia is, therefore, talking to its 36 creditor banks, which include

JP Morgan, Citibank, Itau and Bradesco, on how to restructure the company. This

is an alternative option to judicial recovery, Junqueira said.

Junqueira said that Independencia will offer a package of options to its

creditors.

"We don’t want to force anything on the creditors, and we are trying to build

a consensus," he said.

If Independencia can secure a deal with its creditors, then the meatpacker

can get its plants up and running again, Junqueira said.

"There are five or six (plants) that should be profitable, and the aim is to

reopen and rehire former employees," he said, noting additional job losses may

be possible.