JBS Sees Debt Restructuring

JBS is contemplating a debt restructuring operation, according to remarks made by CEO Wesley Batista. With the aim of boosting annual profit by $100m, the meat producer is considering the sale of new bonds, obtaining bank loans, or transferring $2bn in debt to the JBS USA unit. The company may decide on a specific plan in the next 90 days, according to Batista. Batista’s comments come in conjunction with JBS’ earnings reporting. The meat company posted a Q4 2010 net loss of BRL539.3m, compared to a profit of BRL127.9m in the last quarter of 2009. The company said nonrecurring debentures payments and restructuring costs for some of its units had a negative impact on the results. The company also plans to focus on organic growth in 2011.