Mercon Coffee Group, one of the world's largest coffee traders, has filled for bankruptcy protection in the United States due to what it defined as "exceptionally challenging operating environment," according to a document seen by Reuters. Mercon, which has operations in all the major producing regions including Brazil, Vietnam and Central America, said in a letter sent to clients that problems in recent years such as the logistical disruption during the pandemic, frost and drought in Brazil, price volatility and rising interest rates all combined to hurt the company's financial situation. In the letter, signed by Mercon's Chief Executive Oscar Sevilla, the company said that lenders have elected "not to extend credit agreements, resulting in extremely tight working capital conditions." Court documents from the U.S. Bankruptcy Court for the Southern District of New York show Mercon and its affiliates in several countries have a total debt of $363 million. Among the largest creditors are several banks in the countries where Mercon operates, but also trade companies in Brazil, Central America and the United States.
