Credit crunch hits Brazilian ethanol boom with first bankruptcy filing

In Brazil, signs of the credit crunch appeared in the previously booming Brazilian ethanol sector when Companhia Albertina said that it had filed for protection from creditors while it attempts to restructure $100 million in debt. “I’m still ready to play ball, but the ball disappeared,” former Brazilian Agriculture Minister Robert Rodrigues told AP when his plans for an ethanol startup were placed on hold due to a financing slowdown. Local observers predicted that consolidation would begin for the industry unless credit eased quickly, and the director of the ethanol business for Odebrecht predicted more bankruptcies. The industry has expected up to $40 billion in new investment between 2009 and 2012.

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