Soreide Law Group recently filed a lawsuit on behalf of an investor who purchased the Tonon Bioenergia S.A. 9.250% Senior Notes due 2020. Tonon Bioenergia is a Brazilian sugar and ethanol producer which has been reportedly seeking debt restructuring due to the fact that Brazil’s sugar and ethanol producers are struggling because of a fall in sugar prices. The current drop in prices is the lowest drop in six years. This is due to the worst drought in eighty years and a multi-year cap on ethanol prices. This makes it nearly an impossible for the producers to meet their obligations. Forty-seven ethanol and sugar mills closed since 2011 and seventy are under bankruptcy protection.
Recently, Tonon Bioenergia announced that its subsidiary, Tonon Luxembourg S.A., offered to exchange all of its outstanding $300,000,000 debt with the 9.25% Senior 2020 Notes for a new “step-up Senior notes due 2020”. If this doesn’t happen, Tonon Bioenergia S.A. 9.250% notes will likely default. Soreide Law Group is interested in speaking to investors who purchased Tonon notes at the recommendation of their stock broker or financial advisor.
Tonon’s balance sheet reflects losses for several years leading up to the issuance of these notes to investors. Investors who purchased the Tonon Bioengergia S.A. 9.250% Senior Notes may be able to recover their investment losses by filing a claim in arbitration against the brokerage firms that recommended their purchase.
For more information call Securities Lawyer, Lars Soreide, at (888) 760-6552 or visit http://www.SecuritiesLawyer.com.