Brazilian longs steelmaker Grupo Aço Cearense, also known as Sinobras, approved last week a bankruptcy protection plan, according to a media report from Estadao, which added that the company has some BRL 1.9 billion in debt.
The media report said 85 percent of creditors who attended the meeting approved the bankruptcy protection plan. They represent about 54.29 percent of the company’s total debt.
As previously anticipated by SteelOrbis, Sinobras filed late for bankruptcy protection in May this year. The group has a 1 million mt/year capacity, and argued at the time the increasing revenues weren’t enough to help the company cope with what it labeled as an “adverse economic scenario” in Brazil.
Creditors include banks BTG Pactual, Santander, Banco do Nordeste, Bradesco and Itau Unibanco.