Another Brazilian Sugar Producer Files for Bankruptcy Protection

There’s still no end in sight to the tough market conditions that have wreaked havoc in Brazil’s sugar industry, the world’s largest.

Clealco Acucar & Alcool SA, a sugar and ethanol producer in Sao Paulo state, on Tuesday became the latest sugar company to file for bankruptcy protection. It failed to reach an agreement with creditors to restructure about 1.1 billion reais ($250 million) of bank debt. The company said in a statement that depressed sugar prices and weather issues were to blame.

Brazil’s heavily indebted sugar-cane processors are struggling due to a slump in international prices and prolonged dryness ...