BRAZIL: Dedini's judicial recovery plan approved by court
Published: 02/17/2017, 2:50:33 PM
Dedini, which was one of Brazil's largest machinery producers for the sugarcane industry, had its judicial recovery plan approved by a Brazilian court Wednesday, according to Brazil's Agência Estado newswire.
The plan was approved by the company's creditors last year, but still needed approval by judge Marcos Douglas Veloso Balbino da Silva, of the Second Civil Court of Piracicaba, São Paulo state.
Dedini had BRL300 million (US$97.14 million) in debt when its bankrupt recovery process was announced in 2015.
The crisis in the sugarcane sector knocked down Dedini's revenues from BRL2.1 billion (US$680 million) in 2008 to BRL380 million (US$123.04 million) in 2014. Dedini expects to reach operating net revenue of BRL306 million (US$99.08 million) in this first year of compliance with the plan, with small growth expected for 2018 and 2019.
According to the approved recovery plan, Dedini will pay labor creditors in full during 2017. Other creditors will be paid in 11 years, with a 50% discount.
The company will receive BRL21 million (US$6.8 million) for the sale of one of its assets, a parking lot at a shopping mall in Piracicaba. This will allow Dedini to liquidate liabilities of more than half of its labor creditors.