Banks Backing Brazil Coffee Traders Could Take $181 Million Hit – CoffeeTalk

Brazilian coffee traders Atlantica and Cafebras have a total of 1.1 billion reais ($181.6 million) in credit with banks, according to court documents. The amount refers only to advance money the banks gave to traders in contracts linked to future coffee exports, known locally as ACCs. It is not known if the traders have other debt with roasters or coffee importers related to supply deals. Brazil’s largest bank, state-controlled Banco do Brasil SA, has the biggest share of the debt with 765 million reais, followed by Banco BTG Pactual with 181.5 million reais and Banco do Nordeste with 100.9 million reais. Other three banks had smaller credits pending from ACCs. Atlantica and Cafebras, both owned by Brazilian coffee group Montesanto Tavares, filed a request last week to have a large part of its debt negotiated in court, a judicial move that can precede a bankruptcy proceeding if the negotiation is not successful.

Read More @ Reuters