Ranchers shun Brazil Independencia debt plan-report

SAO PAULO Aug 7 (Reuters) - A group of 1,524 cattle ranchers said they would reject a debt-reduction plan by Brazilian beef processor Independencia INDALI.UL to exit bankruptcy proceedings, Valor Economico said Friday.

Independencia, which filed for bankruptcy protection in early March, offered to cap debt payments to ranchers at 80,000 reais (US$43,550), Valor said. That makes up for an estimated 120 million reais in total paymwents for the ranchers.

But they instead are demanding a total 330 million reais be paid as part of any renegotiation accord or will halt supplies to the company, Valor said.

The Russo family, Independencia's controlling shareholders, are seeking to meet with leaders of five big ranchers' groups to work out a solution, Valor said, citing Antenor Nogueira, who represents some of the creditors.

Under the plan outlined to courts and creditors last month, Independencia would split assets into two companies. One company called Nisa would house the operational assets and a third of Independencia's estimated $1.6 billion debt, while another could assume the rest of the liabilities.

A Sao Paulo-based spokeswoman said the company couldn't immediately comment on the Valor report.

Saddled by debt, several Brazilian beef processors have been hit hard by the global credit crisis and a drastic reduction in access to financing, as well as a decline in imports by clients in Europe and Asia. Independencia, which had about 90 percent of its debt denominated in dollars, was hard hit by extreme swings in the real just after the global credit turmoil intensified in early September 2008. (Reporting by Guillermo Parra-Bernal; Editing by John Picinich)