Brazil-Countries fourth largest meat packer to re-Structure.

Brazilian meatpacker Sadia SA (SDA) is considering a capital injection of 1 billion Brazilian reals ($430 million) to reinforce its cash position, local newspaper Valor Economico reported Wednesday.

One of the alternatives under study by the company is to borrow the funds from the Brazilian National Development Bank, or BNDES, said the report, which cited the company’s investor relations director, Welson Teixeira.

The possible capital injection comes amid concerns over Sadia’s financial health.

According to analysts, the company is likely to report its first annual net losses for 2008.

At the end of last year, Sadia announced a nonrecurrent loss of BRL760 million in its foreign exchange futures positions.

In the first nine months of 2008, the company posted a net loss of BRL442.6 million, reversing a net profit of BRL393..9 million seen in the same period of 2007.