(Bloomberg) -- Biosev SA, a Brazilian sugar producer controlled by Louis Dreyfus Holding BV, has started preliminary talks with banks to renegotiate its loans as the company battles to return to profitability, according to people with direct knowledge of the matter.
Biosev is looking to extend maturities on about 4.8 billion reais ($1.16 billion) in debt coming due in the 2021-2022 and 2022-2023 crop years, one of the people said. The last time Biosev did such a large renegotiation was in 2018 when its parent company had to inject $1.05 billion as part of an agreement with banks.
Biosev, the No. 2 producer in Brazil, is among several companies struggling with a years-long slump in prices in an oversupplied market. It recently sold two northeastern plants as part of a turnaround plan.
Biosev declined to comment and a spokeswoman for Louis Dreyfus Co., a sister company to Biosev also controlled by LDH, said the company can’t comment on the sugar unit.
Biosev shares have dropped more than 80% since they began trading in Sao Paulo in 2013.
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