Safras Group has its request for judicial recovery granted by the MT Court

Judge Giovana Pasqual de Mello, of the 4th Civil Court of Sinop (MT), granted, this Tuesday (20/05), the request for judicial recovery filed by the Safras Group. The decision covers all companies in the conglomerate, including the headquarters and subsidiaries of Safras Armazéns Gerais, Safras Bioenergia and Safras Agroindústria.

“Furthermore, in view of the verification of the required legal assumptions, aiming to make it possible to overcome the economic and financial crisis of the applicants, to allow the maintenance of the production source, the employment of workers and the interests of creditors, thus promoting the preservation of business activity, its social function and the stimulus to economic activity”, stated the judge.

In the decision, the judge also appointed the company AJ1 as judicial administrator, which will have 48 hours to sign the commitment term. It will also be up to the company to present the report, with a specific technical statement on the essentiality of the Cuiabá industrial plant.

In the request filed by Grupo Safras on April 4, the company argued that the measure would be important, since they are facing a serious economic and financial crisis, caused by a sharp drop in the price of soybeans in the first half of 2023, in addition to the absorption of significant liabilities, and the attempt to repossess the industrial plant in Cuiabá.

“In this context, the importance of this request for judicial recovery is heightened. With it, we hope to create a safe and transparent environment — supervised by this Court, the future judicial administrator and the creditors themselves —, conducive to rapprochement with creditors, partners and financiers, the resumption of dialogues and the cooperative restructuring of the activities of both groups. The closure of their respective operations would bring disastrous losses at all social and economic levels”, says an excerpt from the initial petition.

With the approval, the Safras Group, the plaintiff in the process, must, within a non-extendable period of 60 days, present the recovery plan, which will be prepared jointly with Makalu Partners, which acts as financial and strategic advisors to the Companies Under Reorganization, as well as Mubarak Advogados, and Daniel Carnio Advogados.

In addition, the Public Prosecutor's Office, the Federal and State Public Treasuries and the Municipalities where the company has an establishment will also be notified of the decision to the Commercial Board of the State of Mato Grosso, in order to proceed with the registration of the judicial recovery.