Aracruz Gets More Time to Restructure

Brazilian paper and pulp producer Aracruz Celulose has postponed until December 11 the date for concluding negotiations to restructure its debt. At the start of November, Aracruz reached an agreement with banks to unwind 97% of its negative currency derivative positions. It was planning to reach a debt restructuring agreement with banks by November 30. Currency fluctuations in October devastated the company’s positions, costing it ratings downgrades and a potential tie-up with Votorantim Celulose e Papel. Other LatAm corporates were also whacked by the sharp rise in the dollar.