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BEST CORPORATE LIABILITY MANAGEMENT

Jan 1, 2011

After suffering derivative losses in the 2008-2009 crisis, Brazil’s Aracruz Celulose was purchased by Votorantim Celulose e Papel.

The union, christened Fibria, had solid operations and was the world’s largest pulp producer, but faced a massive task to refinance the 45% of total debt that was coming due 2010-2011.

In all, Fibria faced $2.1 billion in derivative prepayments and $1.5 billion in other refinancing needs. It would tackle these through the sale of its Guaíba mill to Chile’s CMPC for $1.43 billion, a five and seven-year pre-export facility totaling $1.15 billion, and $1.00 billion in new 10-year bonds. Santander advised the buyer on the sale closed in December 2009.

"We were able to retire all of our derivative debt by late...

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“The crisis has been a setback for reserve diversification."

Jan Dehn, Ashmore Investment Management


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