One of the world's largest coffee traders filed for bankruptcy with debts of more than $300 million
Mercon Coffee Group, one of the world's largest coffee traders, filed for bankruptcy protection under Chapter 11 in New York after experiencing a "challenging operating environment" in the coffee trade, Reuters reported.
In a letter to customers, Mercon, which has operations in all major production regions, including Brazil, Vietnam and Central America, said that a number of problems in recent years, such as multiple logistics disruptions during the outbreak, frost and drought in Brazil, price fluctuations and rising currency interest rates, had hurt the company's financial position. And the lender has chosen not to extend the credit agreement, resulting in extremely tight working capital conditions.
According to court documents from the bankruptcy Court for the Southern District of New York, the total debt of Mercon and its subsidiaries in several countries is $363 million. The biggest creditors include several banks in the countries where Mercon operates, as well as trading companies in Brazil, Central America and the United States.
In fact, in 2019, Mercon announced a $450 million sustainable development initiative and a groundbreaking revolving credit facility, and launched an internal sustainable development program called LIFT in Nicaragua. The program features training, technical assistance, rural business management, agricultural practices, Rainforest Alliance standards compliance, and access to capital and risk management tools for coffee farmers. As part of the loan, Mercon will expand its LIFT program to other countries of origin that already have operations, including Guatemala, Honduras, Brazil and Vietnam. The mechanism is a credit facility led by the Dutch Bank of Cooperation (Rabobank) and will use sustainable development initiatives linked to performance indicators for sustainable development.
However, due to the various problems and difficulties encountered by the company in recent years, the final result is to stop the plan and apply for bankruptcy protection. Currently, the restructuring under Chapter 11 bankruptcy allows Mercon to continue to operate to repay its debts.
Currently, only Nicaragua, the country's main coffee buyer and exporter, CISA Exportadora, has ceased operations and went bankrupt. Therefore, the Government of Nicaragua indicated that it was cooperating with coffee industry and foreign coffee traders to ensure the sale and export of Nicaraguan coffee.
Disclaimer: some of the pictures in this article come from the network, and some of the contents of the website, such as pictures, we will respect the origin of the original copyright, but due to the large number, there will be individual pictures and texts not in time to indicate, please forgive me. If the original author has any disputes can contact the website to deal with, once verified, we will immediately correct, by "Ka comment vdailycom" collation and editing, reprint please indicate, this article is intended to spread coffee culture, if infringement, please inform to delete, thank you ~!
FrontStreet Coffee is a long-established specialty coffee roaster in Guangzhou China, selling freshly roasted beans from its own farm in Yunnan as well as dozens of carefully selected single-origin beans from around the world for both pour-over and espresso. The products deliver consistently excellent quality and great value, with shipping within 24 hours. Guangzhou’s FrontStreet Coffee shop is recommended by many coffee lovers, and the beans are now available online at the Tmall 。
Important Notice :
前街咖啡 FrontStreet Coffee has moved to new addredd:
FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou
Tel:020 38364473
- Prev
COE Competition and Coffee Cup Test and scoring Standard
Last month, Qianjie shared with you the scoring system of the cup test, in which we briefly mentioned COE. In daily life, the word COE often appears on the label of some beans. This arouses everyone's curiosity: what is COE? COE "COE", full name is "C"
- Next
Why is it necessary to inject water in five stages in the four or six cooking method?
In many cases, the works are more well-known than the authors, such as the Mona Lisa and Leonardo da Vinci, four or six cooking methods and Mr. Sakuzhe. Therefore, every time we mention Mr. Guzhe, we always introduce him as the inventor of the four or six cooking method! So today, what we want to share is the hands of the world in 2016.
Related
- Characteristics of the origin and production areas of fine coffee in Africa Introduce the characteristics of the world's three major coffee-producing countries
- Why is the flow rate of hand-brewed coffee sometimes fast and sometimes slow? Relationship between coffee bean hardness and altitude roasting method
- Iced Coffee Daquan Detailed Tutorial Steps Fei: The difference between full ice, normal ice, less ice, and ice-free American style
- Hand-brewed coffee powder pit judges extraction problem What is the reason why coffee grounds are layered? How to solve the problem?
- What should I do if cold extracted coffee is too bitter or too sour? Analysis of the causes of over extraction and insufficient extraction of iced coffee
- Why doesn't homemade lattes taste like coffee? Latte beans and milk shopping guide Latte concentrate extraction parameters
- How do you think about the freshness of coffee beans, taste appreciation period, shelf life? Can expired coffee beans be roasted twice?
- Which is more suitable for espresso? Light roast, medium roast, and dark roast? Why is coffee fat richer?
- Why can I never finish making coffee in Turkish sand? Share Turkish coffee making steps and parameters!
- The influence of the thickness of the hand-brewed coffee powder bed on the extraction taste! What is the difference between a flat bottom and a conical V60 filter cup?