BRAZIL: Dedini paid more than half of total debt with workers in 2017
Published: 12/06/2017, 3:39:32 PM
Dedini Indústrias de Base, which was one of Brazil's largest machinery producers for the sugarcane industry, has paid more than half of its total debt with workers this year, according to Brazil's Piranot news website.
"Contrary to what has been said, the results of the judicial auctions of two industrial buildings owned by Dedini - the refractory unit in Piracicaba and Codistil plant in Jaboatão dos Guararapes (PE), - both closed this week, do not constitute a failure of the judicial recovery process," said Alexandre Temerloglou, consultant at Siegen, the firm responsible to advise Dedini's judicial recovery process.
Dedini's had its judicial recovery plan approved by a Brazilian court in February, committing to pay workers in full in the first year of compliance with the plan.
The company received no proposals for its two buildings during a recent auction, but Temerloglou said there are investors interested in partial purchases of the assets. The company will now request the judge authorization to sell the assets separately, in case there is a formal proposal.
Temerloglou said that Dedini is also working to unblock other resources worth more than BRL10 million (US$3.09 million) in order to pay debts with workers by February 2018, which is the legal deadline according to the recovery plan.
Dedini had BRL300 million (US$92.7 million) in total debt when its bankrupt recovery process was announced in 2015.