Brazilian espresso exporting firms Atlântica Exportação e Importação SA (Atlantica) and Cafebras Comércio de Cafés do Brasil SA (Cafebras) — each a part of the Montesanto Tavares Group — have filed for chapter. 

The businesses mentioned they’re searching for safety from collectors, with debt totaling 2.13 billion reais (US$367 million, as of this writing).

The US-based sibling firm of Atlantica and Cafebras inside Brazil’s Montesanto Tavares Group, inexperienced espresso importer Ally Espresso, was not named within the chapter submitting. 

Day by day Espresso Information photograph by Nick Brown.

In keeping with an announcement revealed by the Atlantica and Cafebras on Feb. 28, the chapter safety submitting is in response to “monetary disaster” led to by a major variety of rollovers — i.e. extensions of espresso supply deadlines to producers — and contract defaults by producers.

The teams attributed the defaults to the comparatively excessive benchmark costs which have affected the espresso trade over the previous yr, in addition to the devaluation of the actual in relation to the greenback.

Each firms late final yr requested a Brazilian courtroom for a grace interval for debt negotiations with collectors together with Banco do Brasil, BTG Pactual and Banco do Nordeste, as first reported by Marcelo Teixeira at Reuters. With these negotiations apparently unsuccessful, the businesses proceeded with an official chapter submitting in a Brazilian district courtroom in Belo Horizonte. 

Feedback? Questions? Information to share? Contact DCN’s editors right here. For all the newest espresso trade information, subscribe to the DCN e-newsletter.