Aralco SA-Acucar & Alcool, the Brazilian sugar and ethanol producer that filed for bankruptcy protection in March, will negotiate new debt terms directly with bondholders in a bid to cancel the judicial restructuring request, Bloomberg News reported today. A group representing about 80 percent of bonds will present the Aracatuba, Brazil-based company a proposal to forgo or delay some payments, or a combination of both. Bondholders are also negotiating a standstill agreement with creditor banks. To nullify the bankruptcy protection process, an accord would have to be reached before the Brazilian court accepts the filing.
