SAO PAULO Nov 28 Commodities trader Glencore
Plc presented the highest bid in an auction for the
sale of a distressed Brazilian sugar mill and is well positioned
to take control of the plant, a source with direct knowledge of
the process said on Monday.
The Swiss commodities powerhouse offered around 350 million
reais ($103 million) for the unit, topping bids by five
companies that took part in the auction for the Guararapes mill
currently controlled by local firm Unialco, which has filed for
bankruptcy and is under court protection against creditors.
According to the source, the second highest bid was
presented by Raízen, the joint venture between Cosan SA
Industria e Comercio and Royal Dutch Shell Plc
, at 280 million reais.
Creditors should meet on Dec. 9 to decide on the offer.
The mill located in the main cane belt in the Sao Paulo
state has installed capacity to process 2.5 million tonnes of
cane per year.
Unialco has around 700 million reais in debt, so creditors
will likely have to accept some losses despite Glencore's bid.
Glencore declined to comment and officials at Unialco were
not immediately available for comment. Glencore already operates
the Rio Vermelho mill in Junqueiropolis in Sao Paulo state.
(Reporting by Marcelo Teixeira; Additional reporting by Reese
Ewing; Editing by Lisa Shumaker)