Private-equity firm Laep Investment Ltd said in a
securities filing on Friday that it could face negative equity
if state development bank BNDES writes down its investment in
dairy producer Lacteos Brasil SA LBR, according to a securities
LBR is currently struggling with slowing sales and rising
costs. According to a newspaper report this week, BNDES is
considering writing down part of its investment in LBR, a fact
that could affect the finances of Laep. Laep has an indirect
stake in LBR through investment holding company Monticiano SA.
"Any reduction in BNDES' estimates value for its stake could
result in an equity write-off at Monticiano that could in turn
have impact Laep, whose equity could in fact turn negative," the
filing added. Laep is "urgently" looking for alternatives to
remain financially and operationally viable, the filing said.