IBI Infinity Regs

 

TIDMIBI TIDMIBIW 
 
RNS Number : 5337S 
Infinity Bio-Energy Ltd 
20 May 2009 
 

INFINITY BIO-ENERGY LTD 
 
 
BRAZILIAN SUBSIDIARIES FILE FOR JUDICIAL RECOVERY PROCEDURES IN BRAZIL RESULTING 
IN IMMEDIATE SUSPENSION OF DEALING IN SHARES. 
 
 
May 20, 2009 - Infinity Bio-Energy Ltd (AIM:IBI.L) (the "Company") announces 
that its wholly-owned subsidiary, Infinity Bio-Energy Brasil Participações SA 
("Infinity Brazil"), together with Infinity Brazil's operating subsidiaries, 
filed for judicial recovery in Brazil yesterday and as a result, dealings in the 
Company's shares on the AIM market have been suspended immediately, pending 
further clarification. 
 
 
After an extensive process of analysis and review with its advisors, the board 
of the Company has decided to undertake this process to deal with the financial 
constraints the Company has been facing since the second half of last year due 
to the delay in milling of the last harvest as a result of equipment delays. The 
situation has been compounded by the international financial crisis and the 
difficulties the sugar and ethanol sector in Brazil has been facing. 
 
 
Judicial recovery is a judicial process under Brazilian law that facilitates the 
restructuring of economically viable businesses which are experiencing temporary 
financial difficulties. The judicial recovery process is expected to preserve 
the on-going business, and allow the Company to restructure its debt 
obligations. There is expected to be a stay-period of 180 days during which no 
claims or enforcement proceedings against Infinity Brazil or its subsidiaries 
can be enforced. Within this 180-day period, Infinity Brazil hopes to finalise 
and submit a judicial recovery plan to its creditors for approval. 
 
 
The principal objective of the judicial recovery filing is to ensure the 
operational continuity of the Company's five mills located in the Brazilian 
states of Mato Grosso do Sul, Minas Gerais, and Espírito Santo and to 
re-establish an adequate capital structure. 
 
 
The Company continues to seek alternative solutions to its current financial 
challenges and is maintaining discussions with certain parties in relation to 
restructuring its debt and its business, as well as raising additional 
financing, in order to return to a sustainable and stable operating position. 
The Company will need to raise capital to fund its ongoing working capital needs 
and to repay its debt obligations. Shareholders of the Company should be aware 
that if the Company's capital raising efforts are unsuccessful, this would have 
a material adverse effect on the Company's financial position and operations. 
 
 
As part of this process, the Company intends to put in place a strategic review, 
to consider, whether to take steps to put a resolution to the Company's 
shareholders to request the cancellation of the listing of the Company's 
securities on the AIM market. Further details of this will follow in due course. 
 
 
For further information, please contact: 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Infinity Bio-Energy Ltd            |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Sergio Thompson-Flores, CEO        | +55 11 3525-9921                   | 
+------------------------------------+------------------------------------+ 
| Rodrigo Aguiar, IRO                | +55 11 3525-9922                   | 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Collins Stewart Europe Limited     |                                    | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
| Adrian Hadden/Adam Cowen           | +44 (0) 20 7523 8350               | 
+------------------------------------+------------------------------------+ 
|                                    |                                    | 
+------------------------------------+------------------------------------+ 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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