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Shree Renuka’s Brazilian cos will file for bankruptcy

CNBC-TV18 learns that one of the country’s largest sugar companies, Shree Renuka Sugar’s Brazilian subsidiares may file for bankruptcy today.

The pain for the sugar industry is not restricted to India alone. CNBC-TV18 learns that one of the country’s largest sugar companies, Shree Renuka Sugar ‘s Brazilian subsidiares may file for bankruptcy today.

Shree Renuka’s two Brazilian companies may file for Chapter 11, which will protect it from creditors for a limited period and help it to restructure debt with creditors.

The company’s total debt in its Brazilian companies stands at around USD 800 million (Rs 5,200 crore) and the Brazilian assets’ equity contribution stands at around Rs 1,600 crore.

In Renuka Vale Do Ivai, Shree Renuka holds 100 percent stake, while in Renuka do Brasil, it holds 59.4 percent stake.

However, Shree Renuka did not respond to CNBC-TV18’s queries.