Independencia Liquidation Likely: Barclays

Lacking funding for operations, creditors of Brazilian beef company Independencia could initiate liquidation proceedings soon, Barclays Capital says in a report. “At this point, it seems very unlikely that Independencia will re-emerge out of a second restructuring in less than a year as a going concern, and therefore we believe that studying potential liquidation scenarios makes more sense for creditors,” the bank says, spotting a recovery value at 36-45 cents on the dollar. Despite discussions initiated in September to restructure debt and bring in fresh equity, the meatpacker announced this month it would miss an interest payment on its 15% of 2015 bonds. Recent press reports claim the company is unable to cover operating expenses and had to suspend operations. Officials at Independencia did not respond to a request for comment.