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Arabica Coffee Futures 13-year minimum Brazilian Coffee exporters apply for bankruptcy Protection

Published: 2024-11-16 Author: World Gafei
Last Updated: 2024/11/16, Sao Paulo (Reuters)-Coffee workshop (Wechat official account cafe_style) Sao Paulo (Reuters)-Terra Forte, one of Brazil's largest coffee exporters, has filed for bankruptcy protection in Sao Paulo state court, the company's lawyer said on Wednesday. Law firm Freire,Assis,Sakamoto e Violante said that Terra Forte

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Sao Paulo (Reuters)-Terra Forte, one of Brazil's largest coffee exporters, has filed for bankruptcy protection in Sao Paulo state court, the company's lawyer said on Wednesday.

Law firm Freire,Assis,Sakamoto e Violante says Terra Forte hopes to restructure 1.1 billion reais ($288.2 million) of debt. It also said exporters were seeking to raise 60 million reais of working capital from investors to stay afloat.

Terra Forte is a famous enterprise in the international coffee market. Headquartered in Sao Joao da Boa Vista, Sao Paulo, the company has a branch in Po ç osdeCaldas, the main coffee belt in the state of Minas Gerais, and a branch in Santos, Brazil's largest coffee export port.

Some coffee merchants in London have said in recent days that they have heard that Terra Forte has encountered problems in fulfilling its contracts with European importers, pointing to this as the reason for the recent short-term coverage campaign in the coffee market.

The exporter can deliver around 2.5 million bags of green coffee per year and is one of the top five suppliers in the Brazilian export market.

Although a trader, Terra Forte is a large coffee producer that manages seven farms in the states of Sao Paulo and Minas Gerais.

A spokesman for Terra Forte headquarters in Sao Joao da Boa Vista declined to comment.

The law firm in charge of bankruptcy protection issued a brief note saying exporters were seeking financial support to continue their operations, hoping to raise short-term funds as investors tried to renegotiate their huge debts.

"when the restructuring is completed, the company's goal is to find strategic partners in the market," the note said.

The bankruptcy filing comes from Arabica, New York, where benchmark prices hover at their lowest level in 13 years, and global producers complain that sales value is lower than production costs.

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