Wednesday, 28 January 2009

Santelisa Vale Seeks Debt-For-Equity Swap

Santelisa Vale SA, the Brazilian sugar and ethanol maker that reportedly lost $300 million in derivatives bets gone awry, is rushing to exchange 2 billion reais of debts into equity. Gazeta Mercantil reported the move, without giving a clue who sourced them the information. There are more than 10 banks involved in the deal, in which the BNDES, obviously, is involved too. It doesn't take much to imagine the way the BNDES is helping out Santelisa Vale: pumping money into the company to consolidate a strategic player in the strategic ethanol strategic industry ...

Gazeta also reported that the investment-banking unit of BNDES, the so-called BNDESPar, is considering an additional investment in Santelisa Vale worth 500 million reais.

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