Brazil-Demise of Brazilian Beef Giant.

BEEF COMPANY FILES FOR PROTECTION FROM CREDITORS.

Arantes Alimentos Ltd, have filed for protection from creditors under the equivalent to the US Chapter 11 bankruptcy laws.

The company lawyers made the announcement on Tuesday, sending shock waves through the farming industry, in the wake of the problems at poultry giant Sadia.

The company filed on Tuesday, under what is known as the Judicial Recovery Act.

The company has estimated debts of US$650 million.

The company has been involved in a very rapid expansion program, with numerous large acquisitions in the last couple of year, the current credit crisis stopped then in their tracks.

The companies application will be studied by a judge, if granted they have 60 days to present a plan of recovery to the court.

Two credit rating agencies downgraded the company after Xmas, when they failed to meet interest payments on bank loans.