Big Chicken if restructures to be feasible

After nearly being put up for sale last year because of the difficulties caused by the shot of the grains used in animal feed and, mainly, by its high short-term debt, the Paraná Big Chicken meat processor has sparked a deep shock. Ahead of the company, businessman Evaldo Ulinski resigned all the Board and began a pilgrimage by creditor banks in search of longer term for the payment of debts of the company.
The offensive begins to show effect. Thanks to the transfer of chicken prices, the Big Chicken came out of the red and closed the first quarter of this year with a net profit of $ 5 million. In the same range of 2012, there was a loss of r $ amargado 4 million. The earnings before interest, taxes, depreciation and amortization (Ebitda) rose from about $ 15 million in the first quarter of 2012 for $ 37 million in the first three months of this year. In the same comparison, revenues jumped from $ 310 million to $ 370 million. With the results of the first quarter, the Big Chicken now estimates a revenue of r $ 1.5 billion in 2013, up from $ 1.2 billion in 2012.
In an interview with value, Ulinski acknowledged its share of "guilt" in the difficult moment lived by the company last year. "I lost focus when I decided to dedicate myself to an operation that represented only 5% of the revenues," he said, referring to the incursion of the Big Chicken on the market of special cuts of beef, which was already abandoned by the company.
The delicate situation of the Big Chicken is reflected mainly in the high indebtedness for a midsize enterprise. At the end of 2012, the company accumulated a debt of $ 400 million, of which US $ 200 million maturing in the short term. "The way it was, we would have to sell the company," said Ulinski. There was no lack of proposals. The Executive not comment, but the value that the Big Chicken JBS surveys and received an American Investment Fund. Asked about the interest in the Big chicken, JBS did not comment.
Back to the core business of the company, Ulinski resigned last September, all the Board. In the same month, he began talks with banks to renegotiate the debt, a process that should be completed this month.
In the negotiations with the banks, the Big Chicken got a grace period of two years with the big banks and six months grace period with the average banks, second Ulinski. "We will have five years to repay debt with the big banks," said the Executive. It reports that only 20% of the current company's debt is in the hands of average banks, which will begin to be paid in the same year.
Confident that the Big Chicken will keep their Ebitda margin of 10% recorded in the first quarter, the businessman already estimates that the company's debt will fall to about $ 350 million at the end of the year. The company also holds a box of r $ 50 million, designs Ulinski.
Part of the optimism is anchored in Executive Board decision dismissed, which did not reduce the accommodation of arrays in August last year. At that time, almost all major industries cut production to ease the effects of high grain used in feed. The Big Chicken didn't so now has offer to meet the demand. The company gets 85% of its revenue with chicken meat.
Today, the Big Chicken operates with maximum capacity, shooting down 460 thousand chickens a day, in Rolândia and Santa Fe, both in the State of Paraná. In the area of pigs, slaughter 1.5 thousand head per day in Palmas (PR) and produces embedded in a plant in Maringá.